Steven H. Toushin - Page 11




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          of January 1, 1980.  By his plea, petitioner thus implicitly                
          admitted that he had no cash hoard as of January 1, 1980.                   
          Additionally, there is ample evidence that petitioner experienced           
          serious financial problems between 1976 and 1978 when his assets            
          were in receivership.  Petitioner's allegation of a cash hoard              
          was inconsistent, implausible, and not supported by objective               
          evidence in the record.  See Parks v. Commissioner, 94 T.C. 654,            
          661 (1990).                                                                 
               We therefore conclude that petitioner did not have a cash              
          hoard as of January 1, 1980.                                                
               C.  Petitioner's Sale of Poppers                                       
               Petitioner alternatively argues that his unreported income             
          was attributable to his sale of "poppers"2 on behalf of the                 
          Screening Room and that E&A of CA, and not petitioner, should be            
          taxed on the income from the sale of poppers.                               
               From petitioner's testimony, it is unclear how petitioner              
          acquired the poppers, if and how petitioner transferred the                 
          poppers to the Screening Room, the quantity sold, and the price             
          at which they were sold.  Petitioner's testimony was vague and              
          contradictory as to this matter.  See Tokarski v. Commissioner,             
          87 T.C. 74, 77 (1986).  Even if we were to believe that                     
          petitioner, acting as a representative of the Screening Room,               


               2 "Poppers" consist of a substance which a person inhales              
          "to get high".                                                              




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