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Remaining Disputed Bank Deposits and
Other Checks -- 1987 and 1988
With regard to the remaining $16,9323 disputed bank deposits and
other checks for 1987 and the remaining $2,9504 disputed bank
deposits for 1988, we conclude that the deposits should be treated as
taxable income to petitioner. Petitioner’s law practice constitutes
the likely taxable source of these deposits.
Cash Withdrawals From the Club -- 1987 and 1988
Respondent argues that the $6,721 and $4,699 that petitioner
withdrew from the cash registers of the Club in 1987 and 1988 were
used for personal purposes and constituted taxable income to
petitioner. Petitioner argues that only $320 of the cash withdrawals
(represented by receipts reflecting the handwritten notation "draw")
should be taxable to him and that the remaining cash withdrawals were
used to recruit dancers for the Club and should not be taxable to
him.
3 This $16,932 represents the sum of the following: The
disputed bank deposits at TexCommBk, account No. 14909839, that
were dated 8/18/87, 9/28/87, and 11/20/87; the disputed bank
deposit at TexGuarantyBk, account No. 40033653, that was dated
9/16/87; and the disputed checks not deposited into petitioner's
bank accounts that were dated 1/19/87, 1/21/87, and 8/21/87, plus
four other undated checks made payable to petitioner totaling
$3,244 (see supra pp. 19-20).
4 This $2,950 represents the sum of the disputed bank
deposits at TexGuarantyBk, account No. 00007823, that were dated
8/22/88 and 11/4/88 (see supra p. 20).
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