Leo and Alla Goldberg - Page 35

                                        -35-                                          
          during 1988.  Petitioners claim that the amount they reported,              
          $1,328, represented unemployment compensation and that the $4,606           
          amount that respondent claims they failed to report represented             
          disability compensation.  Petitioner, however, has provided                 
          neither explanation nor corroboration of any alleged disability.            
          Petitioner's testimony was not persuasive.  Respondent's                    
          determination that the unreported amounts represented taxable               
          unemployment compensation will be sustained.                                
          Unreported Income--Kortava                                                  
               Respondent determined that petitioners failed to report                
          income received from Kortava during 1990 and 1991.  Petitioner              
          received $292,544 and $275,612, in 1990 and 1991, respectively,             
          from Kortava.  Petitioner returned $165,000 to Kortava in 1991.             
               Preliminarily, petitioners contend that respondent's proof             
          at trial and argument on brief do not conform to the notice of              
          deficiency or to the affirmative pleadings.  Petitioners note               
          that the statutory notice of deficiency and answer refer to                 
          "foreign fund income" as an adjustment to income in the amounts             
          of $220,000 and $233,566 for 1990 and 1991, respectively.  The              
          notice of deficiency explains this determination as "Supplemental           
          compensation and bonuses are includable in gross income."                   
          Respondent's answer, in alleging fraud, states:  "The petitioners           
          fraudulently and with intent to evade income taxes failed to                
          report foreign fund income in the respective amounts of $220,000            
          and $233,566 during 1990 and 1991 taxable years."  Respondent's             




Page:  Previous  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  42  43  44  Next

Last modified: May 25, 2011