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Butler, a business associate, totaling approximately $19,000, and
that he deposited these moneys into his bank account. (Mr. Butler
and petitioner were to be involved in the export of coffee to
Russia.) We found petitioner's testimony credible.
Mr. Shumatsky also testified and corroborated petitioner's
testimony. (Petitioner testified that he was unable to reach Mr.
Butler in order for the latter to testify.) We found the testimony
of Mr. Shumatsky credible. No witnesses testified on behalf of
respondent.
Our ultimate task is to distill truth from falsehood. As
trier of facts, we "must be careful to avoid making the courtroom
a haven for the skillful liar or a quagmire in which the honest
litigant is swallowed up." Diaz v. Commissioner, 58 T.C. 560, 564
(1972).
On the basis of the testimony of petitioner and Mr. Shumatsky,
we are persuaded that the unexplained deposits came from Messrs.
Shumatsky and Butler. Hence, petitioners have shown respondent's
determination as to the taxability of the deposits to be incorrect.
Consequently, we hold that petitioners did not underreport their
1992 income by $25,112, as determined by respondent.
Issue 2. Must Petitioners Include $7,220 Representing the Market
Value of a Trip to Scotland and England Earned by Petitioner as a
Sales Award in Income?
Most of the insurance policies petitioner wrote were with
Kentucky Central Life Insurance Co. In 1992, petitioner received
a free trip to Scotland and England for himself and his wife as a
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