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Q Why were these cash deposits not added into the
gross income for 1994 and 1995?
A Because it wasn’t gross income that was earned
during those two tax years.
Thus, the cited testimony deals with amounts deposited into the
bank accounts, and does not tell us anything about cash
expenditures that bypassed the bank accounts.
The parties stipulated that during 1994 “petitioners spent
no less than $85 per week on personal grocery expenses, for a
total of $4,420.” Respondent does not contend petitioners spent
more than $4,420 on personal grocery expenses. Petitioners do
not contend they spent less. The parties’ stipulated listing of
1994 “personal living expenses which petitioner paid by check”
shows only three such payments, totaling $366, under the category
“Food”. Total personal grocery expenses of $4,420, less $366
food expenses paid by check, leaves $4,054 grocery expenses paid
by cash. In light of the irrelevance of the only evidence
petitioners rely on for their objection, we conclude that the
foregoing constitutes clear and convincing evidence of the
correctness of the 1994 adjustment (supra table 7) on account of
personal living expenditures made by cash.
(b) 1995.--Respondent contends for an adjustment of $11,618;
petitioners for an adjustment of $5,600. Both sides agree that
petitioners’ $5,000 cash house downpayment should be included in
this adjustment. For the same reasons we expressed as to 1994,
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