Opinion ID: 542295
Heading Depth: 4
Heading Rank: 1

Heading: Cash Hoard

Text: 15 Appellants claim that the Commissioner and the Tax Court failed to note that they had received a substantial amount of cash from loans, gifts and other receipts of money. Appellants argue that the correct sum of cash on hand and undeposited in banks as of December 31, 1976, amounted to at least $200,000, rather than the $23,629.53 determined by the Commissioner. The Tax Court was not persuaded that the Manzolis saved or obtained cash from the sources identified by appellants, and found that the evidence presented by the Manzolis did not support their assertion. We agree with the Tax Court's findings. 16 The record is devoid of documentary evidence with regard to the alleged loans, gifts or receipts of money. As to the amount of the loans, particularly those made by Mrs. Manzoli's father, Mr. Spinale, the Tax Court found a series of inconsistencies. 4 The Tax Court further found that even assuming that appellants had accumulated cash for the purpose of the construction of their home, as they alleged, by the time of completion of said project, the cash on hand would have been substantially depleted. Finally, the Tax Court concluded that the Manzolis' borrowing of money more clearly indicates the absence rather than the presence of a large accumulation of cash. See Davis v. Commissioner, 239 F.2d 187, 190 (7th Cir.1956), cert. denied, 353 U.S. 984, 77 S.Ct. 1284, 1 L.Ed.2d 1143 (1957); Thomas v. Commissioner, 223 F.2d 83, 88 (6th Cir.1955). 17 The findings as to the cash hoard are findings of fact which may not be reversed unless clearly erroneous. United States v. Sorrentino, 726 F.2d at 881. The record shows little or no evidence to support appellants' assertions, thus the Tax Court had to base its decision on appellants' testimony. That being the case, the Tax Court was entitled to evaluate what weight should be given to that testimony and to consider the credibility of the witnesses. Because due regard should be given to the opportunity of the trial court to judge the credibility of witnesses, we must defer to its judgment. Anderson v. Bessemer City, 470 U.S. at 575, 105 S.Ct. at 1512; Glasser v. United States, 315 U.S. 60, 80, 62 S.Ct. 457, 469, 86 L.Ed. 680 (1942); Scallen v. Commissioner, 877 F.2d 1364 (8th Cir.1989). Absent clear error, we uphold the Tax Court's conclusion.