Nicholas A. and Marjorie E. Paleveda - Page 14

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          evidence that disputed Mr. Gelcius' testimony that MBL made                 
          payments to petitioner.  The only questions that petitioner asked           
          Mr. Gelcius concerning the issue were:  (1) "Do you have any                
          knowledge of me actually physically receiving the check and                 
          depositing it in my bank account?", to which he responded:  "I              
          was not asked to check on that.  But no, I don't.  But I could              
          have, though", and (2) "So as far as you know, this check could             
          have gone to Angelo Scharelli [the agency manager for the MBL               
          division in south Florida], who in turn deposits [it] in a master           
          bank account?", to which Mr. Gelcius responded:  "I have no                 
          knowledge of where that check would have went out.  All I know is           
          that it would have been sent to Nicholas A. Paleveda."   Mr.                
          Gelcius' testimony was uncontroverted.                                      
               Petitioners argue that they established at the audit that              
          MBL paid Stuart, which then paid $308,936 to petitioner.  We,               
          however, decide petitioners' liability for income tax                       
          deficiencies on the evidence produced at trial and not a previous           
          record developed at the administrative level, Greenberg's                   
          Express, Inc. v. Commissioner, supra, and petitioners did not               
          offer any documentary evidence establishing that MBL paid Stuart            
          and that Stuart paid petitioner.  Additionally, petitioners did             
          not provide any account statements from NationsBank or other                
          documentary evidence to establish that petitioner received only             
          $308,936 in income during 1990.  Finally, petitioners offered no            
          documentary evidence establishing that petitioner merely                    




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