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Held: Ps bear the burden of proving the amount of
the cash hoard.
Held, further, P-H had a $40,000 cash hoard on
Dec. 31, 1996.
Larry Dean Sykes and Ruby Sykes, pro se.
Robert M. Fowler, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
COLVIN, Judge: Respondent determined a deficiency in
petitioners’ income tax of $45,759 for 1997 and an accuracy-
related penalty under section 6662 of $9,151.80.1
Respondent determined that $149,200 seized from petitioners’
residence on March 19, 1998, was petitioners’ taxable income in
1997. Petitioners contend that it was not taxable income because
petitioner Larry Dean Sykes had a cash hoard in that amount on
December 31, 1996.
The issues for decision are:
1. Whether petitioners or respondent bears the burden of
proving the amount of petitioners’ unreported income. We hold
that petitioners bear the burden of proof.
1 Respondent determined that petitioner Ruby Sykes is
eligible for relief from joint liability under sec. 6015(b).
However, she remains a party to the case. See DeLucia v.
Commissioner, 87 T.C. 804, 811 (1986).
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