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Accordingly, we hold that the Friscias underreported their income
for 1994 by $28,215 ($82,976 - $54,761).4
Issue 2. Michael Friscia’s 1995 Taxable Income
Michael Friscia filed his 1995 tax return on December 9,
1996, claiming married filing separate status. Again using the
bank deposits method of proof, respondent determined that Michael
Friscia made bank deposits in 1995 of $78,529, all of which
respondent determined is reportable as income. After concessions,
respondent asserts that $35,915 of this amount is unreported
income.
Respondent’s determination was based on an analysis of five
bank accounts, which we review as follows.
1. The 591, 864, and 898 Accounts
In 1995, Michael Friscia made total deposits of $3,515,
$1,350, and $705, respectively, into the 591, 864, and 898
acounts. Michael Friscia provided no nontaxable source for any of
these deposits. However, these accounts were all joint accounts
in the names of Michael Friscia and Michelle Friscia. Therefore,
4This holding conflicts with respondent’s request for
admission No. 6, which was deemed admitted by reason of the
Friscias’ failure to serve and file a response to respondent’s
Requests for Admission within 30 days. See Rule 90. That
admission stated: “The total of petitioners’ unreported income
for the taxable year 1994 was at least $123,335.00.” Respondent
made no mention of admission No. 6 at trial or in his posttrial
brief and has made numerous concessions that conflict with the
admission. Under these circumstances, we conclude that
respondent has voluntarily withdrawn request for admission No. 6.
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