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Naftel v. Commissioner, 85 T.C. 527, 529 (1985). The moving
party bears the burden of proving that there is no genuine issue
of material fact, and factual inferences will be read in a manner
most favorable to the party opposing summary judgment. Dahlstrom
v. Commissioner, 85 T.C. 812, 821 (1985); Jacklin v.
Commissioner, 79 T.C. 340, 344 (1982).
The factual allegations deemed admitted under Rule 37(c)
establish that petitioner failed to report income in the amounts
of $751,823 and $400,260 from sales of illegal drugs on his 1992
and 1993 Federal income tax returns, respectively. Petitioner's
forfeiture of seized currency does not prevent it from being
included in his gross income. See, e.g., Gambina v.
Commissioner, 91 T.C. 826 (1988). In addition, petitioner failed
to maintain, or submit to respondent for examination, adequate
books or records regarding the income and expenses relating to
his illegal activities during the years in issue. At the start
of the 1992 taxable year and at all times during the 1992 and
1993 taxable years, petitioner neither had, nor received, any
nontaxable or excludable income, receipts, cash, or other assets.
Consistent with these deemed admissions, it follows that
respondent is entitled to summary judgment that petitioner is
liable for the deficiencies in tax for 1992 and 1993 as set forth
in the notice of deficiency.
Respondent also determined that petitioner is liable for the
penalty for fraud under section 6663(a) for 1992 and 1993.
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