Sanford S. Zack v. Commissioner of Internal Revenue

ORDER

Sanford S. Zack seeks review of a Tax Court judgment ** upholding tax deficiencies and fraud penalties assessed by the IRS. Specifically, Zack claims that the Tax Court misallocated the burden of proof by requiring the taxpayer to prove that he actually paid certain deductible expenses.

The facts of this case are fully set out in the Tax Court’s opinion and- the briefs of the parties. Inasmuch as those facts are not in dispute on appeal, we proceed directly to the legal issue.

This controversy centers around the tax consequences of Zack’s illegal use of FHA home improvement loans. For…