Homer L. Richardson - Page 44

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          The Court therefore concludes that the income and allowable                 
          expenses attributable to HGAMC and HGRCT are taxable to                     
          petitioners.                                                                
               Specifically, because HGAMC and HGRCT were shams,                      
          petitioners are required to include in their income for 1996 and            
          1997 business gross income and interest income reported by HGAMC            
          and interest income reported by HGRCT.  In this connection,                 
          petitioners at certain junctures have contended that the amounts            
          of business income reported on the various returns germane to               
          this calculation were overstated on account in some instances of            
          double reporting and in other instances of reporting gross                  
          receipts from the sales of Aegis trusts as opposed to merely the            
          proper commission income on those sales.                                    
               The record, however, contains no documentary evidence                  
          whatsoever that would support or corroborate an alternative                 
          computation.  Furthermore, we observe that petitioners, and not             
          Aegis, had unfettered control and signatory authority over                  
          relevant accounts into which the sales proceeds were deposited.             
          In these circumstances, we cannot relieve petitioners of the                
          implied concessions worked by their and their entities’ filed               
          returns.  See Waring v. Commissioner, 412 F.2d 800, 801 (3d Cir.            
          1969), affg. T.C. Memo. 1968-126; Estate of Hall v. Commissioner,           
          92 T.C. 312, 337-338 (1989).                                                
               As regards expenses, respondent determined that petitioners            
          were entitled to deduct on their returns a portion of the                   




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