Diep N. Hoang - Page 5

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          $241 is the interest on $30,000 for 42 days.  Petitioner claimed            
          he was “an accrual basis taxpayer” and that he should report the            
          interest when it was earned rather than when he received it.                
               The amount of any item of gross income shall be included in            
          the gross income for the taxable year in which it is received by            
          the taxpayer unless under the method of accounting used by the              
          taxpayer the amount is properly accounted for as of a different             
          period.  Sec. 451(a).  Petitioner presented no credible evidence            
          that he used the accrual method of accounting.  Additionally,               
          petitioner testified that in previous years he reported interest            
          income as he received it and as it was reported to him on Forms             
          1099-INT, Interest Income.  Furthermore, petitioner failed to               
          report any interest from Bank One on his 2001 return.                       
               Petitioner was vague, absentminded, and nonresponsive when             
          answering certain questions about the Bank One CDs.  Despite                
          having clear memories of events from the 1980s and 1990s and the            
          exact maturity date of the Bank One CDs, petitioner claimed                 
          memory loss as to the amount he received in 2001 from the Bank              
          One CDs.  He was unwilling to admit or deny whether he received             
          the interest from the Bank One CDs in 2001, even though he signed           
          the stipulation of facts on the day of trial stipulating he                 
          received $2,301 in interest from Bank One in 2001.                          
               Under the circumstances, we are not required to, and                   
          generally do not, rely on petitioner’s testimony to sustain his             

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