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properly raised by the parties". 10A Wright & Miller, Federal
Practice and Procedure: Civil, sec. 2725, at 93 (2d ed. 1983).
A. Deficiencies for 1984 and 1985
The first issue is whether petitioner is liable for the
deficiencies. Respondent moves the Court to hold as a matter of
law that petitioner owes deficiencies of $547,778 and $953,134
for 1984 and 1985, respectively. Under Rule 90(c), matters set
forth in requests for admission are deemed admitted unless an
answer or objection is served on the requesting party "within
30 days after service of the request or within such shorter or
longer time as the Court may allow". Since petitioner has failed
to respond to respondent's requests, the facts as set forth
therein are deemed admitted and are a sufficient basis on which
to grant respondent's motion for summary judgment as to the
deficiencies. Coninck v. Commissioner, 100 T.C. 495, 496 (1993);
Marshall v. Commissioner, 85 T.C. 267, 271-272 (1985); Freedson
v. Commissioner, 65 T.C. 333, 334-336 (1975), affd. on another
issue 565 F.2d 954 (5th Cir. 1978).
Section 61 defines gross income as income from whatever
source derived. The Supreme Court has held that when earnings
are acquired, lawfully or unlawfully, without a consensual
recognition of an obligation to repay, there is income to the
taxpayer. James v. United States, 366 U.S. 213, 219 (1961).
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