- 6 - attributed to him because he received the interest income as a nominee. To prevail, petitioner must carry the burden of proving that such income is not attributable to him or to Mrs. Hernandez. See Rule 142(a). As in Hernandez I, petitioner has failed to present such proof. There is no nominee agreement or other written documentation that petitioner held the income in question as nominee or agent for others. The money that petitioner received from the redemption of tax certificates was deposited in petitioner’s bank accounts.3 Petitioner has failed to provide any credible evidence that demonstrates that such money was transferred to any of the copayees. Petitioner has also failed to provide any evidence that the copayees reported such interest income on their Federal income tax returns. None of the copayees testified at trial. Moreover, petitioner conceded that the interest income reported on at least one Form 1099, which stated a copayee’s Social Security number, belonged to him. Petitioner also testified that he purchased tax certificates intending to give the interest income to his grandchildren. 3 Since petitioner mentioned at trial that he had books and records that he had failed to bring with him or to show respondent previously, we held the record open and permitted the parties to stipulate the contents of those records. The stipulation shows that petitioner probably intended to transfer sums to various relatives. But those persons did not testify in this case, and we do not have proof that they supplied any of the funds that petitioner invested, that they actually received interest income from these investments, or that they reported on their tax returns any income from petitioner’s investments.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011