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little in the way of rebuttal. Although THC’s accounting records
labeled some of the funds it received from Equitable Leasing as
loans, those entries were contradicted by other entries labeling
the payments as commissions. Kanter did not provide any
additional evidence such as promissory notes or proof of
principal or interest payments to corroborate THC’s records.
Given that Kanter controlled the entities involved, we resolve
any doubts engendered by the record in respondent’s favor.
Considering all the circumstances, we sustain respondent’s
determination that the funds that Equitable Leasing transferred
to THC and Zion during 1983 represented income that Kanter earned
during 1983 and that he attempted to assign to THC and Zion.
These payments are includable in Kanter’s income for 1983.
Issue VIII. Whether Kanter Received Unreported Income for 1982
According to the Bank Deposits Method of Income
Reconstruction (STJ report at 129-133)
FINDINGS OF FACT
During 1982, Kanter made a total of approximately $2.8
million in deposits to his three bank accounts at American
National Bank at Chicago, Illinois. Kanter maintained a check
register in which he recorded the source and nature of the
deposits made to these accounts. In preparing the Kanters’ 1982
joint individual Federal income tax return, Linda Gallenberger,
Kanter’s accountant, used the check register to determine what
portion of his 1982 bank deposits represented taxable income.
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