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Ms. Dickerson's Respondent's Revised
Reconstruction Reconstruction
Bank Deposit Portion Bank Deposit Portion
Total deposits $85,924 Total deposits $87,853
Nontaxable deposits Nontaxable deposits
Proceeds of truck sale 12,000 Proceeds of truck sale 12,000
Interbank transfers 22,500
Net taxable deposits 73,924 Net taxable deposits 53,353
Cash Expenditure Portion Cash Expenditure Portion
Total expenditures 85,932 Total expenditures 98,441
Check disbursements 89,773 Check disbursements 69,202
and savings account and savings account
withdrawals withdrawals
Less disallowed (6,166)
Schedule E expenses
Cash outlays1 3,841 Cash outlays 23,073
Recomputed income 77,765 Recomputed income 77,765
Reported income 50,778 Reported income 50,778
Unreported income 26,987 Unreported income 25,648
1 Ms. Dickerson erroneously concluded that petitioner had
$3,841 of cash outlays, when $3,841 was the excess of total
checks written over expenditures.
Respondent's recomputation of petitioner's unreported
Schedule C income primarily differed from Ms. Dickerson's initial
computation in two ways. First, respondent subtracted interbank
transfers between petitioner's accounts totaling $22,500,
representing transfers from her savings account to her checking
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Last modified: May 25, 2011