Michael and Kazuko Yang - Page 11




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               Petitioners contend that substantially all the funds                   
          deposited into their Bank of Taiwan account in 1996 were                    
          subsequently wire transferred to their Seafirst Bank account.               
          Petitioners bear the burden of proving such duplicate deposits.             
          See Estate of Mason v. Commissioner, supra at 657; Zarnow v.                
          Commissioner, 48 T.C. 213, 216 (1967).                                      
               Petitioners concede that there are no duplications for 1995.           
          Mr. Yang testified that 90 to 99 percent of the amounts withdrawn           
          from the Bank of Taiwan account in 1996 were transferred to the             
          Seafirst Bank account and specifically identified the                       
          duplications.  In 1996, the following transactions occurred on              
          the same days with respect to petitioners’ bank accounts:8                  
          Date   Withdrawal (Bank of Taiwan)  Deposit (Seafirst Bank)                 
          3/01/96             $7,306                   $19,985                        
          4/24/96             26,937                   63,985                         
          8/23/96             11,859                   29,985                         
          11/01/96            6,514               49,980                              
               Mr. Yang testified that a family member would make the                 
          withdrawal from the Bank of Taiwan account, add in more money,              
          and then wire this larger amount to the Seafirst Bank account.              
          Based on Mr. Yang’s explanation of the differences in amounts and           
          the corresponding nature of the withdrawals and deposits, we are            
          persuaded that respondent’s determination contained duplications.           
          We hold that the amounts withdrawn from the Bank of Taiwan                  
          account on March 1, 1996, April 24, 1996, August 23, 1996, and              

               8Amounts are in U.S. dollars.                                          





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