Eva J. Madigan - Page 2

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          of $4,999 and $1,148, respectively.  After concessions, the sole            
          issue for decision is whether respondent has connected certain              
          bank deposits that petitioner made in 1991 to a likely source of            
          income.                                                                     
                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and attached exhibits are incorporated             
          herein.  Petitioner resided in St. Petersburg, Florida, at the              
          time she filed the petition in this case.                                   
               Petitioner failed to file a Federal income tax return for              
          taxable year 1991.  As a result, respondent prepared a substitute           
          return for petitioner and subsequently issued a corresponding               
          notice of deficiency on August 9, 1994.  Only one issue remains             
          unresolved, and it involves bank deposits that respondent                   
          identified during an analysis of petitioner's bank accounts.                
          Respondent raised this issue by asserting an increased deficiency           
          based on unexplained bank deposits as discussed below.                      
               While conducting the above-mentioned bank deposits analysis,           
          respondent identified unexplained deposits totaling $30,212.                
          Respondent subsequently concluded that most of these deposits               
          were explained and reduced this amount to $2,808.35.  The                   
          deposits remaining at issue consist exclusively of checks and               
          were made to an account entitled "Madigan and Company".  The                

               1(...continued)                                                        
          all Rule references are to the Tax Court Rules of Practice and              
          Procedure.                                                                  



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