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Petitioner received income in 1989 in the amounts of
$94,343.16 and $698.23 in interest earned on those funds and
failed to report those amounts on his Federal income tax return
for 1989.
Petitioner underpaid his Federal income tax for 1989, and
the underpayment was due to fraud.
OPINION
Respondent determined that petitioner had unreported income
from funds he embezzled in 1989. With respect to the deficiency,
the burden is upon petitioner to prove that respondent's
determination of unreported income is incorrect. Nicholas v.
Commissioner, 70 T.C. 1057, 1064 (1978).
Petitioner has not satisfied this burden. He testified that
Johnson McGee was owned by his uncle, who was relocating the
Johnson McGee business to the United States from Liberia, and
petitioner indicated that the only reason his name was on the
Johnson McGee account was because he was assisting his uncle.
Petitioner also testified that his uncle was killed attempting to
escape from Liberia and that petitioner continued to control the
Johnson McGee bank account as the executor of his uncle's estate.
This testimony, however, is inconsistent with petitioner's
earlier admission to Sterrett that he was the owner of Johnson
McGee and that he used the funds in the Johnson McGee account to
repay a loan he illegally procured in 1988. Petitioner has
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