Charles E. Campbell - Page 10

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            $23,320, $18,554, and $9,658 for 1987 through 1989, respectively.                            
            Under Rule 90(c), matters set forth in requests for admission are                            
            deemed admitted unless an answer or objection is served on the                               
            requesting party "within 30 days after service of the request or                             
            within such shorter or longer time as the Court may allow".                                  
            Since petitioner has failed to respond to respondent's requests,                             
            the facts as set forth therein are deemed admitted and are a                                 
            sufficient basis on which to grant respondent's motion for                                   
            summary judgment.  Coninck v. Commissioner, 100 T.C. 495, 496                                
            (1993); Marshall v. Commissioner, 85 T.C. 267, 271-272 (1985);                               
            Freedson v. Commissioner, 65 T.C. 333, 334-336 (1975), affd. 565                             
            F.2d 954 (5th Cir. 1978).                                                                    
                  Section 61 defines gross income as income from whatever                                
            source derived.  The Supreme Court has held that when earnings                               
            are acquired, lawfully or unlawfully, without a consensual                                   
            recognition of an obligation to repay, there is income to the                                
            taxpayer.  James v. United States, 366 U.S. 213, 219 (1961).  In                             
            James, the Supreme Court stated that "This standard brings                                   
            wrongful appropriations within the broad sweep of 'gross                                     
            income'".  Id.                                                                               
                  Petitioner has admitted facts which overwhelmingly establish                           
            substantial, intentional omissions of taxable income for 1987                                
            through 1989.  The admissions establish that petitioner was                                  
            engaged in activities such as gambling, sales of illegal                                     





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