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taxable on the $16,905 in dividends earned in the Sam Han
account.
The balance of the dividend income for which respondent
bears the burden was earned in Chung No. 1 ($3,525 on March 1,
1988) and Chung No. 3 ($211). Respondent has shown that
petitioner had dominion and control over Chung No. 1 when the
dividends were earned. Further, respondent has shown that the
transfers out of Chung No. 1 into Chung No. 3, which are
traceable to ANB No. 2, occurred before the dividends at issue
were paid. Accordingly, respondent has shown that the dividends
in Chung No. 1 were not transferred to ANB No. 2 or any other
custodial control. Therefore, we sustain respondent’s averment
that petitioner has unreported dividend income of $3,525 in
connection with his control of Chung No. 1. With respect to
Chung No. 3, the record does not disclose when the $211 in
dividends (paid on a money market fund) in that account was paid.
Moreover, because there were transfers from Chung No. 3 to P-B
No. 2 to ANB No. 2, and the money market dividends could
reasonably be described as “Gerber account” proceeds (in
accordance with petitioner’s characterization of those
transferred amounts that we have elsewhere treated as an
admission), we conclude that respondent has failed to show that
the dividends paid in the Chung No. 3 account were not
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