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rule when the statement sought to be introduced is only
collateral to the statement against the declarant’s interest.
Williamson v. United States, 512 U.S. 594, 599-600 (1994). Such
is the case with the statement respondent seeks to introduce. We
accordingly decline to consider respondent’s allegation that
petitioner had embezzlement income in an increased amount of
$17,700 from Ms. R. The sole basis for the allegation is
inadmissible hearsay.9
With respect to respondent’s original determination that
petitioner had embezzlement income of $15,000 from Ms. R. in
1990, the two letter memoranda executed by petitioner establish
to our satisfaction that petitioner received $5,000 and $10,000
from Jennifer R. in July and November 1990, respectively. In
these memoranda, petitioner acknowledges receipt of the foregoing
amounts, promises to invest the money, and guarantees a “minimum
return” or “return” of 25 percent in 1 year (in one instance) or
45 days (in the other). We are struck by the similarity of these
arrangements with those that petitioner foisted upon John K.
That is, in the same year, with respect to both John K. and
Jennifer R., petitioner first obtained a substantial sum
9 Respondent also concedes on brief that the revenue agent’s
notes provide the sole basis for his determination that
petitioner had unreported income of $2,600 in 1990 from the sale
of electronics to Jennifer R. Because the notes are likewise
inadmissible hearsay with respect to this transaction, there is
no competent evidence that petitioner had this specific item of
income, and we accordingly do not sustain the determination.
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