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blocks on April 22 and May 20, 1988, for a net total of $104,143,
and commingled with other personal funds of petitioner’s. Since
the record establishes that petitioner used $116,600 in corporate
funds to purchase the Pan Am stock and that the Pan Am stock and
its proceeds are traceable to a personal account of petitioner’s,
respondent has met his burden of showing that petitioner had
unreported income of $116,600 in 1988 as a result of the Pan Am
stock transactions.47
With respect to the $450,000 in cash that petitioner
transferred in early 1988 from corporate accounts to the Sam Han
account, petitioner’s exercise of personal dominion and control
over all transferred assets by mid-1988 renders the cash in the
Sam Han account taxable to him except to the extent that the
record shows that amounts in the Sam Han account were transferred
to custodial accounts or otherwise made subject to the TRO. The
record establishes that $80,000 was transferred on July 18, 1988,
from the Sam Han account to ANB No. 3, a custodial account
subject to the TRO. In addition, Northwest’s auditors discovered
the Sam Han account in August or early September 1988, and the
TRO was amended specifically to cover it on October 14, 1988.
Respondent has shown that $450,000 in cash from corporate
47 Since petitioner sold the Pan Am stock for $104,143 in
1988, he may be entitled to a loss on its disposition. We
anticipate that the parties will address this matter in their
Rule 155 computations.
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