Marcel Toto Ngosso - Page 7

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          on the bill of lading because the Jeep Cherokee was received by a           
          shipping agent.                                                             
               Petitioner did not produce receipts or shipping documents              
          for other items that he purchased for, and shipped to, Mr.                  
          Emmanuel.  Petitioner did not produce other records from the                
          currency exchange transactions, such as the letters faxed to Mr.            
          Emmanuel or the designated recipient, because “there was no need            
          to keep it” once the transaction was over.  Petitioner explained            
          that he accounted for the U.S. dollars that he held on behalf of            
          Mr. Emmanuel by using his bank account statements.                          
               The record contains account statements from a Citibank                 
          account that petitioner co-owned with two other individuals,                
          Ebenezer Soh Kengne and Daniel P. Fleret.  Petitioner did not               
          explain, and it is not clear from the record, who owned the funds           
          in the Citibank account.                                                    
               Respondent, utilizing a bank deposits methodology,                     
          determined that petitioner underreported $39,444 of income.4                
          Respondent’s agent explained at trial that respondent first                 
          examined petitioner’s income tax return for the 1996 tax year in            
          connection with a tax return preparer penalty.  Respondent                  
          determined that petitioner had unexplained bank deposits of                 

               4  Petitioner testified at trial that he received income               
          from his family in Cameroon and rental income from two houses               
          that he owns in Cameroon.  Respondent did not make a                        
          determination or a claim with respect to these two sources of               
          income.  Therefore, such matter is not at issue.                            

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