- 7 - In Hernandez I, this Court’s comments about similar circumstances were as follows: With respect to amounts of interest received from the redemption of certificates held in his or Mrs. Hernandez’ name and those of Vincent or Mildred Hernandez, respectively, petitioner produced no evidence that such amounts were not his income other than a document signed in 1984 by Vincent and Mildred Hernandez purporting to give petitioner a power of attorney. Neither Vincent nor Mildred Hernandez testified at trial. With respect to the remaining persons whose names appeared on the tax certificates as alternate payees, petitioner produced no evidence at all. Unlike the taxpayer in the “Mexican Lottery Case”, Diaz v. Commissioner, 58 T.C. 560, 565 (1972), whose grandmother, “face-to-face with her priest in the courtroom”, corroborated every word of his testimony that the lottery tickets in question belonged to his uncle, petitioner failed to bring a single witness, neither brother, daughter, nor friend, to the courtroom to corroborate his story that he was holding these funds for them. In failing to do so, petitioner did not carry his burden of proving that these funds belonged to other taxpayers. * * * Here the record does not include any purported power of attorney. Instead, petitioner presented a letter from Vincent Hernandez, his brother, claiming that the certificates purchased in Vincent’s name after 1985 were purchased for him. As in Hernandez I, Vincent Hernandez did not appear to testify about the letter, and there is no evidence that any of the income in issue was reported on a tax return by Vincent Hernandez or any of the other copayees. There is no question that the income here in issue is interest income and therefore is includable in gross income underPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011