Bobby E. Welch - Page 7

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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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