[*35]
control. Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 431 (1955).
As the Supreme Court explained, a gain “constitutes taxable income when its recipient has such control over it that, as a practical matter, he derives readily realizable economic value from it.” Rutkin v. United States, 343 U.S. 130, 137 (1952).
When the Commissioner reconstructs income using the bank deposits method, the taxpayer’s gross income includes deposits into all accounts over which the taxpayer has dominion and control including deposits into the taxpayer’s personal bank accounts. See Chambers v. Commissioner, T.C. Memo. 2011-14, slip op. at 17; Price v. Commissioner, T.C. Memo. 2004-103, slip op. at 25; Cohen v. Commissioner, T.C. Memo. 2003-42, slip op. at 9; Woodall v. Commissioner, T.C. Memo. 2002-318, slip op. at 7; Woods v. Commissioner, T.C. Memo. 1989-611, aff’d without published opinion, 929 F.2d 702 (6th Cir. 1991). A taxpayer has dominion and control when the taxpayer is free to use the funds at will. Rutkin, 343 U.S. at 137. Use of funds for personal purposes indicates dominion and control. Woods v. Commissioner, T.C. Memo. 1989-611.
Petitioner testified that she had little involvement with the operation of CSE. Petitioner further testified that she signed checks on behalf of CSE only
