- 19 - have included an additional $14,030 in income as a result of these distributions. The Mansours received and deposited into their personal bank account at First Union checks from Mina of Sanford, net of repayments, totaling $31,750. The IRS determined that Mina of Sanford was an S corporation during 1996 and that the Mansours had failed to establish their basis in their Mina of Sanford stock. Accordingly, because the Mansours reported income of $10,524 from the operations of Mina of Sanford on their 1996 return, the IRS determined that the Mansours should have included an additional $21,226 in income as a result of these distributions. 3. Other Income The Mansours received and deposited into their personal bank account at First Union unexplained amounts of cash and checks from sources other than their business entities or those reported on their income tax return totaling $138,235. The IRS determined that the Mansours should have reported this amount on their 1996 return as income from self-employment. B. 1997 The IRS determined that the Mansours received and deposited into their personal bank accounts at First Union and SunTrust unexplained amounts of cash and checks from sources other than their business entities or those reported on their income taxPage: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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