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including those immediately preceding and succeeding check No.
1546, cleared Champion’s bank account in January 1999.
From October 1998 through January 1999, Champion’s bank
statements, with some variation, reflect significant positive
balances. Petitioner controlled Champion, and he had control
over the funds in Champion’s bank account.
Respondent’s determination herein “has the support of a
presumption of correctness, and the petitioner has the burden of
proving it to be wrong.” Welch v. Helvering, 290 U.S. 111, 115
(1933). Petitioner has not met this burden.2
Petitioner has offered no evidence that there was any
requirement or understanding that the $95,233 check would be
returned to Champion. At trial, none of Champion’s books and
records were produced. Petitioner failed to call Champion’s
bookkeeper as a witness. Wichita Terminal Elevator Co. v.
Commissioner, 6 T.C. 1158, 1165 (1946), affd. 162 F.2d 513 (10th
Cir. 1947).
We conclude that, in addition to the $27,415 in wage income
not contested by petitioner, the $95,233 reflected by check No.
1546 is to be treated as wage income taxable to petitioner in
1998.
2 Petitioner has not satisfied the requirements of sec.
7491(a)(1) and (2) or the requirements of sec. 6201(d), under
which, in some circumstances, a shift to respondent in the burden
of proof or production may be available.
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