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extent petitioner establishes the amounts were paid for valid
trade or business expenses of petitioner.
A. Should the Checks Offered by Petitioner Be Admitted?
We conclude that the copies of checks submitted by
petitioner should be admitted, notwithstanding respondent’s
objection. The parties have stipulated the existence of the
Universal account. Respondent has introduced copies of checks
drawn on that account as evidence that petitioner and Ms. Ghavami
were authorized to (and did) write checks on that account during
1993; petitioner has stipulated the admission of those copies.
In addition, at the Court’s urging, petitioner worked with
respondent’s counsel during the week before trial to agree on
many additional stipulations, including stipulations concerning
deposits to the Universal account that helped prove respondent’s
case. We also note that as part of these additional
stipulations, respondent conceded that petitioner is entitled to
deduct some expenses paid with checks drawn on the Universal
account.
In light of the foregoing, it is clear respondent has not
been surprised by the existence of the Universal account, and
does not question or need to investigate the authenticity of the
copies of checks drawn on that account. Indeed, respondent has
relied on check copies and other information about the Universal
account as proof of respondent’s case in chief; some of that
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