Kenneth A. Weiner - Page 9

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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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