Darrell L. Gaines - Page 16

                                       - 15 -                                         
          his Social Security records, his Federal income tax returns for             
          1979 and 1980, and his former partner, who testified at trial,              
          indicate otherwise.                                                         
               A claim of the existence of a cash hoard is often “met with            
          some suspicion”, De Venney v. Commissioner, 85 T.C. 927, 933                
          (1985), and we are more than somewhat suspicious of petitioner’s            
          claim in this case.  Ignoring for the moment petitioner’s                   
          inconsistent statements as to the amount of his cash hoard, after           
          careful consideration of other evidence in the record we, like              
          respondent, reject his claim.                                               
               His earning history over the years, as indicated by Social             
          Security and income tax records, does not support the                       
          accumulation of cash in any amount claimed by petitioner.  See              
          Petzoldt v. Commissioner, supra at 692.  According to petitioner,           
          he led a frugal lifestyle for most of his adult life and was able           
          to accumulate cash savings to the extent claimed.  Although they            
          do not provide a complete picture of his earnings, petitioner’s             
          Social Security records, when coupled with information in the               
          record regarding his Federal income tax returns filed in years as           
          far back as 1967, make petitioner’s claim that his frugal                   
          lifestyle allowed him to accumulate a substantial cash hoard                
          completely incredible.  Moreover, if petitioner had access to the           
          amount of cash he claimed, we think it highly unlikely that he              
          would have allowed his house to be sold in a foreclosure sale in            






Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011