-11-
Welch v. Helvering, 290 U.S. 111, 115 (1933). Petitioner must
overcome the presumption as to each item of unreported income as
determined by respondent. Foster v. Commissioner, 391 F.2d 727,
735 (4th Cir. 1968), affg. in part and revg. in part on other
grounds T.C. Memo. 1965-246. Petitioner has not proven that he
did not receive $872,210 in 1984 as determined by respondent or
that the funds were not income to him in 1984.
Petitioner points out that respondent did not produce the
Lopps' income tax returns, and he argues that the Lopps' returns
would prove that they, and not petitioner, received the funds in
dispute. Petitioner's argument misses the mark. We have found
that petitioner received the funds from the land sale and used
them to buy certificates of deposit in his own name.
Respondent's special agent and revenue agent testified that
petitioner repaid $200,000 to the Lopps in January 1985. The
record does not show what led petitioner to do that. The return
of funds to the Lopps in 1985 does not establish that the funds
were nontaxable to petitioner in 1984. See Commissioner v.
Glenshaw Glass Co., 348 U.S. 426, 431 (1955) (taxpayer is taxable
on accessions to wealth over which he or she has complete
dominion). Thus, petitioner is liable for income tax on $676,721
of the land sale proceeds and on $195,489 from the refund checks
(a total of $872,210).
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