Edward T. O'Toole - Page 10

                                       - 10 -                                         
               4.   Whether Petitioner Had Capital Gains in 1994                      
               First Fidelity Bank N.A. New Jersey issued four Forms 1099-            
          B, Proceeds From Broker and Barter Exchange Transactions, showing           
          that it paid petitioner capital gains of $1,162 from the sale of            
          stocks and bonds in 1994.  Petitioner contends that the amounts             
          identified as capital gains in the Forms 1099-B were loans.  We             
          disagree.  Petitioner’s uncorroborated testimony that these                 
          amounts were loans was unconvincing.                                        
               5.   Whether $20,169 That Petitioner Deposited in a Bank               
                    Account in 1997 Was Income to Petitioner                          
               Respondent determined that petitioner’s cash deposit of                
          $20,169 to an FNB Bank of Maryland account in 1997 was income to            
          petitioner.  Petitioner does not dispute that the $20,169 was               
          deposited in his bank account in 1997.                                      
               A bank deposit is prima facie evidence of income.  Tokarski            
          v. Commissioner, 87 T.C. 74, 77 (1986).  In O’Dwyer v.                      
          Commissioner, 266 F.2d 575, 588 (4th Cir. 1959), affg. 28 T.C.              
          698 (1957), the U.S. Court of Appeals for the Fourth Circuit held           
          that the taxpayers had the burden of overcoming the presumption             
          of correctness that a bank deposit was unreported income.  There            
          was no evidence in the record as to the source of the deposit,              
          and the Fourth Circuit found that the taxpayers failed to                   
          overcome the presumption because they offered no evidence or                
          testimony about the deposit.  Id.  Thus, petitioner bears the               

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011