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Also during 1988, six checks were drawn on H&B's First
Interstate account and made payable to petitioner in the
total amount of $9,577.62. One of these checks was signed
by both petitioner and a "Mr. Moore". One of the checks
was signed by Mr. Petty. Some of the checks bear notations
stating that they were issued to pay for travel or other
expenses. Respondent determined that the entire amount of
these checks constitutes income to petitioners.
We find that petitioners have not met their burden
of proving that respondent's determination is erroneous
insofar as the six checks payable to petitioner are
concerned. These checks were issued contemporaneously with
the checks payable to cash. However, petitioners have
provided no explanation why some of the checks were payable
to cash and others were payable to petitioner if all of the
proceeds were used to pay expenses incurred on H&B's
behalf. Furthermore, petitioners introduced into evidence
a summary which states that check No. 1171, which was
signed by Mr. Petty, was actually given to Mr. Petty.
Petitioners claim that this check represents part of the
proceeds of another check which was deposited into H&B's
First Interstate account 11 days earlier. Petitioners'
summary states that this deposit was made from Mr. Petty's
personal funds, and that Mr. Petty used the proceeds of
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