Mark N. Wright and Erica Y. Wright - Page 26

                                       - 26 -                                         
          (1994) (citing DiLeo v. Commissioner, 96 T.C. 858, 868 (1991)),             
          affd. 959 F.2d 16 (2d Cir. 1992).                                           
               Respondent produced bank deposit records, as well as copies            
          of petitioners’ checks, showing that petitioners deposited                  
          $54,000 into their Leadenhall bank account.  Mr. Wright had                 
          initially told the IRS agents assigned to his case that the                 
          $54,000 was a loan from an investor who wanted to remain                    
          anonymous.  Petitioners’ reply brief filed with the Court further           
          contended that the $54,000 was a loan and not income.  At trial             
          Mr. Wright claimed that the six $9,000 checks totaling $54,000              
          represented petitioners’ money, but stated:  “I’m not saying they           
          came from previously reported income; I’m saying they are not               
          income.”  Mr. Wright additionally stated that the $54,000 was               
          sent to Mr. Jones and then deposited by Mr. Jones into                      
          petitioners’ Leadenhall account.23  Mr. Wright also claimed at              
          trial that he never opened a bank account at Leadenhall or                  
          obtained a Mastercard credit card, which the Court did not find             
          convincing or credible.                                                     
               Petitioners did not present any evidence to refute                     
          respondent’s determination that the $54,000 was unreported                  

               23Mr. Wright asserts that petitioners and Ms. Mohr entered             
          into asset management contracts with Mr. Jones that included a              
          best efforts 6-percent return and that Mr. Jones transferred the            
          money from those contracts to CLGs.  The Court did not find Mr.             
          Wright’s testimony on this issue to be convincing or credible.              
          Furthermore, petitioners did not provide the alleged contracts or           
          any other evidence regarding such an agreement with Mr. Jones.              

Page:  Previous  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  Next

Last modified: May 25, 2011