Ilya G. and Sophia K. Margolis - Page 9




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          travel by subway to her home carrying cash ranging from $350 to             
          $800.  Mr. Margolis would then travel back to Manhattan on the              
          following Monday to deposit 95 to 100 percent of the cash to                
          petitioners' account at National Westminster Bank, also located             
          in the Empire State Building.  Apparently petitioners' reason for           
          this practice was so that they would have cash available for                
          their weekend expenditures.                                                 
               We have reviewed petitioners' bank account statements and              
          find that petitioners' testimony is not supported by their                  
          banking pattern.  For instance, a number of the deposits claimed            
          to be deposits of cashed checks are in the amount of $514.                  
          However, upon review of the record, it appears that the $514                
          deposits are actually deposits of unemployment compensation                 
          received by Mrs. Margolis.  Respondent gave petitioners credit              
          for Mrs. Margolis' unemployment compensation in the bank deposits           
          analysis.                                                                   
               According to petitioners' 1992 return, Mrs. Margolis                   
          received $13,621 in unemployment compensation during that year.             
          Based on the record, it appears that she received an initial 1              
          week payment of $257 ($514 � 2) on January 6, 1992 (supported on            
          the record by a deposit of $257 to petitioners' account on that             
          day) and 26 biweekly payments of $514, making a total of $13,621            
          for that year.  Thus, the $514 deposits are in fact deposits of             
          unemployment compensation and not deposits of the proceeds of               
          Mrs. Margolis' cashed checks.                                               



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