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Issue 4. Income From the Redemption of Tax Certificates Is
Attributable to Petitioner as Determined by Respondent
Petitioner argues that the interest received from the
redemption of tax certificates, but not reported on the joint
returns for tax years 1990 through 1992, was not income properly
attributable to him or to Mrs. Hernandez. To prevail, petitioner
must carry the burden of proving that such income is not
attributable to him or to Mrs. Hernandez. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933); see also Smith v. Commissioner,
T.C. Memo. 1995-402, affd. without published opinion 116 F.3d 492
(11th Cir. 1997).
In each year at issue, petitioner received interest income
that was not reported on his joint return for that year from the
redemption of certificates held either in his name and the name
of another individual or in the name of his wife and the name of
another individual. These amounts were not reported as either
gross income, secs. 61, 6012(a), or as tax-exempt interest as
required by section 6012(d). In each instance, the money
received from the redemption of the certificates was deposited in
Mrs. Hernandez’ bank account, to which petitioner had access. In
each instance, the funds used to purchase the tax certificates
came from petitioner. With respect to amounts included in
respondent’s redetermination of petitioner’s taxable income, none
of the alternate payees listed on the tax certificates reported
these amounts as income on their income tax returns, nor did they
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