Larry Dean Sykes and Ruby Sykes - Page 15




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               evidence is equally balanced, the court shall find that                
               the Secretary has not sustained his burden of proof.                   
               [Emphasis added.]                                                      
          S. Rept. 105-174, at 45-46 (1998), 1998-3 C.B. 537, 581-582.                
               Petitioners contend that petitioner had a $149,200 cash                
          hoard on December 31, 1996.  Thus, we first decide whether                  
          petitioners introduced evidence of petitioner’s cash hoard which,           
          after critical analysis, we would find sufficient upon which to             
          base a decision on the issue if no contrary evidence were                   
          submitted (without regard to the judicial presumption of IRS                
          correctness).  See id. at 46, 1998-3 C.B. at 582.                           
               2.   Petitioners’ Evidence                                             
               Petitioner testified that he accumulated a cash hoard over a           
          30-year period from his various jobs and from selling two houses            
          he owned.  He introduced bank records showing that he had a safe            
          deposit box which he entered 53 times from December 1987 to March           
          1998.  Danney Sykes and Gary Sykes each testified that they saw             
          petitioner with a large amount of cash on several occasions.                
               Petitioner testified that, by 1970, he had saved $4,000 from           
          working at a store and doing odd jobs, and that, by 1971, he had            
          saved another $3,000 from working at a pallet mill and as a tree            
          trimmer.  He said that he saved about half of his income from               
          International Paper from 1973 to 1981 and that he had saved                 
          $54,000 from International Paper by 1981.  He testified that he             
          saved $6,000 from a settlement he received from International               






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