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the $105,000 was a loan from J. Mantakounis to petitioners, and
not cash that petitioner found in a box. On July 25, 1997,
petitioners’ attorney produced to Moore a “note”, the $154,000
check to J. Mantakounis, and the settlement sheet for the
Springfield property as evidence of the loan.
On April 15, 1999, petitioner met with Appeals Officer
Walter Lyons (Lyons). At this meeting, petitioner denied that he
ever mentioned finding the money in a box in his father’s house.
Petitioner stated that J. Mantakounis sold property in Greece and
that funds from that sale were loaned to petitioner. Petitioner
first told Lyons that J. Mantakounis loaned him the money in
Philadelphia. He later claimed that his father gave the cash to
petitioner in Florida.
On January 24, 2001, respondent sent to petitioners a notice
of deficiency for 1991. Respondent determined that the $105,000
was unreported income, increasing petitioners’ taxable income
accordingly.
OPINION
Unreported Income
Generally, the taxpayer bears the burden of disproving the
Commissioner’s determination. Rule 142(a); see Welch v.
Helvering, 290 U.S. 111, 115 (1933); Clayton v. Commissioner, 102
T.C. 632, 645 (1994). Petitioners, however, argue that here the
burden shifted to respondent under section 7491 because
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