Lesely J. and Aljournia Moore - Page 11




                                        - 11 -                                        
          cash used to make payments in any of the subject years.3                    
          Accordingly, petitioners have failed to show error in                       
          respondent’s reconstruction of their taxable income.                        
               As best we can discern, petitioners’ primary defense seems             
          to be that they believed that their guilty pleas to tax evasion             
          with respect to taxable year 1990 would relieve them of civil               
          tax liability for all the subject years.  Petitioners’                      
          misapprehensions in this regard afford no basis for relief.  In             
          any event, the judgments in Lesely’s and Aljournia’s respective             
          criminal cases explicitly state that full restitution was not               
          ordered in the criminal proceedings because restitution “will be            
          handled under civil means”.                                                 
               Accordingly, we sustain respondent’s determinations as to              
          petitioners’ unreported taxable income.                                     
          2.   Self-Employment Tax                                                    
               Section 1401 provides that a tax shall be imposed on the               
          self-employment income of every individual.  Petitioners have               
          the burden of proving that they are not liable for self-                    
          employment taxes.  See Rule 142(a).  Petitioners failed to offer            


               3 Aljournia Moore testified that during the search of                  
          petitioners’ residence in 1994, North Carolina law enforcement              
          officers seized, among other things, a “bag of buffalo nickels”             
          given to her by her grandmother.  It does not appear, however,              
          that this currency, or other amounts of currency seized from                
          petitioners’ residence or from Moore’s Auto in 1994, were                   
          included in respondent’s bank deposits plus cash expenditures               
          analysis for the years at issue.                                            





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