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came from offshore, petitioner testified that he believed the
deposit was from a purported client of his named James
Scarborough for the promotion of a floating gambling boat on the
Mississippi River. Petitioner later testified that this money
came from an associate of Mr. Scarborough.
Petitioner presented no documentary evidence to support any
of these claims. Neither Mr. Comey or Mr. Scarborough was called
as a witness. We infer that their testimony would not have been
favorable to petitioner. Wichita Terminal Elevator Co. v.
Commissioner, 6 T.C. at 1165.
Petitioner had dominion and control over the Nations trust
account. Petitioner’s name was on the Nations trust account.
Petitioner had the power to make withdrawals out of the Nations
trust account. His Social Security number and name were on the
Nations trust account. Petitioner wrote 21 checks on the Nations
trust account drawing on virtually all of the $100,000 deposit.
We conclude that the $100,000 deposit into the Nations trust
account is petitioner’s income.
II. Section 6651(a)(1)
Section 6651(a)(1) imposes an addition to tax for failure to
file a return on the date prescribed (determined with regard to
any extension of time for filing), unless the taxpayer can
establish that such failure is due to reasonable cause and not
due to willful neglect. Rule 142(a); United States v. Boyle, 469
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