- 46 -
There is likewise no evidence that the funds were invested as
petitioner represented to Ms. R. in the letter memoranda. Based
on the record as a whole, we are satisfied that petitioner has
failed to demonstrate error in respondent’s determination that
she had $15,000 in unreported income in 1990 as a result of
payments to her from Jennifer R. in that amount; we accordingly
sustain the determination. See James v. United States, 366 U.S.
213 (1961); United States v. Rosenthal, 454 F.2d 1252 (2d Cir.
1972); United States v. Rochelle, 384 F.2d 748 (5th Cir. 1967).
IV. Whether Petitioner Had Unreported Income From Sales and
Rentals During 1989 and 1990
Respondent determined, also using the specific item method,
that petitioner had unreported income from certain sales and
rental activity during 1989 and 1990.
A. 1989 Sales of Electronics, Theater Tickets, and Music
Tapes
Respondent determined that petitioner had unreported income
from the sale of electronics of $10,500 from individuals named
Brian and Ted P. and $8,200 from an individual named Howard S.
Petitioner does not dispute receipt of these amounts,11 except
for $400 of the $8,200 received from Howard S. We agree with
11 Although respondent originally determined that petitioner
had unreported income in 1989 of $10,500 from electronics sales
to Brian P., the parties subsequently stipulated that the amount
received from Brian (and Ted) P. from the sale of electronics and
certain introductory fees was $10,800 in 1989.
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