Lawrence J. Polidori - Page 12

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          possessed the financial resources needed to make the 66 deposits            
          at issue.  However, despite his alleged ability to make said                
          deposits, petitioner has not convinced the Court that the                   
          deposits were made using proceeds that he received from the real            
          estate transactions he cites.  Petitioner has simply identified a           
          possible source of funds from which the deposits at issue may               
          have been made.  Yet merely identifying a possible source of                
          funds does not satisfy petitioner's burden.  In order to refute             
          respondent's determination, petitioner must establish that the              
          bank deposits at issue were made from a nontaxable source of                
          funds.  Rule 142(a); Reaves v. Commissioner, 31 T.C. 690, 718               
          (1958), affd. 295 F.2d 336 (5th Cir. 1961); Romer v.                        
          Commissioner, 28  T.C. 1228, 1244 (1957).                                   
               Petitioner's testimony about his having made the deposits at           
          issue using proceeds that he received from various real estate              
          transactions is questionable, and we reject it as such.  Although           
          petitioner's testimony was not contradicted at trial, this Court            
          is not required to accept a taxpayer's uncontradicted testimony             
          if we find such testimony improbable, unreasonable, or                      
          questionable.  Lovell & Hart, Inc. v. Commissioner, 456 F.2d 145,           
          148 (6th Cir. 1972), affg. T.C. Memo. 1970-335; MacGuire v.                 
          Commissioner, 450 F.2d 1239, 1244 (5th Cir. 1971), affg. T.C.               
          Memo. 1970-89; see also Tokarski v. Commissioner, supra.                    
               Furthermore, the size and frequency of the deposits at issue           
          render petitioner's argument suspect.  Of the 66 total deposits,            




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