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they were prepared by Mr. Moore and bear the date of February 20,
1994. There is no explanation as to the reasons why the tax
returns were not timely filed. No one from the Greenberg firm or
Truax testified concerning the preparation of the returns for
1986 and 1988. Mr. Moore testified that he prepared the returns
for 1989 and 1990 from information petitioner gave him.
During the redirect examination of petitioner, he testified
that in making deposits during 1986, he received "cash back" from
checks that were deposited, and, therefore, he made net deposits.
The total amount of the so-called cash back was $5,713. In
reconstructing petitioner's 1986 gross income by the bank deposit
method, respondent had used the net deposits shown on the monthly
statements from the bank. At the close of the testimony
respondent orally moved to amend the answer for the 1986 taxable
year and increase petitioner's gross income by the amount of
$5,713. The Court took respondent's oral motion and petitioner's
objection thereto under advisement.
Discussion
Petitioner does not dispute the amount of the deposits that
went into his bank accounts as determined by respondent. Rather,
he contends that the difference between the total deposits and
the gross income reported results from the loans from Mr. Zurn
and the so-called accommodation deposits from Mr. Antonucci.
There is no question that the funds were actually received. The
only question is whether petitioner has established that the
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