- 11 -
account a check in the amount of $2,870 received from Cutlass
Reality Syndication (Cutlass). The check is annotated: “For
Phone”.
Petitioner testified that the check was to reimburse him for
having a cellular phone installed in an automobile purchased by
Cutlass, a customer of Rallye Motors. Petitioner testified that,
in 1988, it was hard to find the specific type of phone that
Cutlass wanted, he knew where to get one, Cutlass gave him a
check for the approximate amount of the phone, and he got Cutlass
the phone. Petitioner’s testimony was uncorroborated.
Petitioner provided no receipt for his purchase of a phone, nor
did he provide any evidence of the work to install the phone.
Moreover, petitioner neither called anyone from Cutlass to
testify nor explained his failure to do so. We infer from those
failures that any testimony from Cutlass would have been negative
to petitioner. McKay v. Commissioner, 886 F.2d at 1238; Wichita
Terminal Elevator Co. v. Commissioner, 6 T.C. at 1165.
Petitioner has failed to prove that the $2,870 deposit to the
Chase account was a reimbursement for an amount expended on
account of Rallye, and we so find. The deposit remains
unexplained and, thus, is an item of gross income to petitioner.
Tokarski v. Commissioner, 87 T.C. at 77. Accordingly, we
sustain respondent's determination of a deficiency as it relates
to that item.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011