Jerry L. Crabtree - Page 27

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             respondent’s determination, other than their own biased                  
             testimony.  Accordingly, we sustain respondent’s                         
             determination.  See Rule 142(a).                                         

             Income From Pay Telephone Receipts                                       
                  Petitioners argue that respondent’s estimate of pay                 
             telephone receipts is unreliable and arbitrary.                          
             Petitioners claim that respondent should have subpoenaed                 
             the telephone records to determine the actual amount of                  
             money received.  However, petitioners have failed to                     
             produce any telephone records that would refute                          
             respondent’s estimate.  Accordingly, petitioners have not                
             satisfied their burden of proving respondent’s                           
             determination wrong.  See id.  On the basis of our review                
             of the record, we find that petitioners failed to meet                   
             their burden of proof as to each category of income that                 
             respondent’s determination comprises.  Accordingly,                      
             we sustain respondent’s determination that Crabtree                      
             Investments underreported its gross income in each of the                
             taxable years in issue.                                                  

                  The second issue for decision is whether one-half of                
             the unreported income of Crabtree Investments for each of                
             the years in issue is a constructive dividend to each of                 

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