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account of unreimbursed expenses related to Congo Trust.
Respondent concedes that adjustment on the ground that it was a
mistake (it should have been a positive adjustment). A third
adjustment is a positive adjustment in the amount of $65,951 on
account of trust “gross receipts”. From respondent’s trial
memorandum, we learn that such third adjustment combines two
adjustments, the first being an adjustment of $63,481, on account
of the income distribution received by the C E Shirley Trust, and
the second being an adjustment of $2,470 on account of gross
receipts from business omitted from gross income by the
C. Shirleys. Respondent concedes the $63,481 adjustment on the
ground that it duplicates, in part, the adjustment made to the
J. Shirleys’ gross income on account of Alexion Trust’s gross
receipts. The $2,470 adjustment constitutes a new matter, on
which respondent bears the burden of proof. See Rule 142(a). We
accept respondent’s concessions and agree he bears the burden of
proof with respect to the $2,470 item.
Given respondent’s concessions, we are left to consider
three positive adjustments: interest income of $25, unreported
deposits of $33,980, and unreported business gross receipts of
$2,470.
2. Discussion
In the C. Shirleys’ notice of deficiency, respondent’s
ground for the interest adjustment is: “All interest income is
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