John Boyd Tenney - Page 13

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          additional specific items of taxable income to petitioner.  Of              
          the above checks, checks in the totals of $145,430 and $44,100,             
          respectively for each year, were either made payable directly to            
          petitioner or endorsed over to petitioner.  Petitioner claims               
          that these specific checks relate to a stock trading scheme                 
          involving petitioner and other individuals who transferred the              
          same funds back and forth to manipulate the price of stock, and             
          therefore that these checks should not be treated as taxable                
          income to petitioner.  Petitioner has not presented credible                
          evidence of this alleged stock manipulation scheme, and the above           
          checks are to be treated as specific items of taxable income to             
          petitioner.                                                                 
               Certain additional checks in the totals of $332,430 and                
          $69,980 that were not deposited into petitioner’s bank accounts             
          in 1987 and 1988, respectively, and that were charged by                    
          respondent to petitioner as additional items of specific income             
          were not made payable to petitioner.  They were not endorsed over           
          to petitioner, nor were they deposited into petitioner’s bank               
          accounts.  Respondent’s theory for charging these checks to                 
          petitioner as specific items of taxable income appears to be that           
          on some of the checks petitioner’s name was written on the memo             
          line.  Petitioner is not the indicated payee on these checks, and           
          the evidence does not establish that these checks benefited                 
          petitioner.  Funds represented by these checks are not to be                
          treated as constituting specific items of income to petitioner.             




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