- 15 -
omitted); see Wapnick v. Commissioner, T.C. Memo. 1997-133;
Larson v. Commissioner, T.C. Memo. 1993-188.
Petitioners have challenged respondent’s determination for
taxable year 1990 with credible evidence. Respondent’s civil net
worth analysis followed the criminal net worth analysis in
imputing to petitioner husband a $65,000 “investment” in Steady
Beat Records. Petitioner husband’s mother testified credibly
that she was the sole owner of Steady Beat Records, and that she,
rather than petitioner husband, made the $65,000 investment.
This testimony is corroborated by documentation that in 1990 she
applied for the Maryland business license for Steady Beat Records
and signed the lease agreement for its leased premises. In
addition, a friend of the mother’s testified credibly that she
had lent the mother money for the investment.
As evidence that petitioner husband owned Steady Beat
Records, respondent offered the testimony of George Harvell,
petitioner husband’s sometime acquaintance, who testified
unconvincingly that petitioner husband had admitted to him these
and other matters. We did not find George Harvell to be a
credible witness.7 Accordingly, we conclude and hold that
7 In 1990, Harvell pleaded guilty to income tax evasion
pursuant to sec. 7201. In exchange for his testimony against
several people, including petitioner husband, the Government
refrained from charging Harvell with cocaine distribution.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011