- 17 -
7454(a); Rule 142(b); Petzoldt v. Commissioner, 92 T.C. 661, 698-
699 (1989); Hebrank v. Commissioner, 81 T.C. 640, 642 (1983);
Mosteller v. Commissioner, T.C. Memo. 1986-505, affd. without
published opinion 841 F.2d 1123 (4th Cir. 1988).
Respondent cannot meet her burden of establishing the
existence of an underpayment on the basis of petitioner's failure
to meet his burden of proving error in the determination of
deficiencies. Drieborg v. Commissioner, supra at 218; Parks v.
Commissioner, 94 T.C. 654, 660-661 (1990). However, respondent
has amply met her burden.
Where a taxpayer fails to keep books and records sufficient
to establish the amount of his or her tax liabilities, or if the
records maintained do not clearly reflect income, then the
Commissioner is authorized to reconstruct income by any method
which, in her opinion, clearly reflects the taxpayer's income.
Sec. 446; Harbin v. Commissioner, 40 T.C. 373, 377 (1963); sec.
1.446-1(b)(1), Income Tax Regs. The Commissioner may use any
reasonable method to compute the income, and no particular method
is required. Campbell v. Guetersloh, 287 F.2d 878, 880 (5th Cir.
1961). The Commissioner's method need not be exact but must be
reasonable. Holland v. United States, 348 U.S. 121 (1954);
Rowell v. Commissioner, 884 F.2d 1085 (8th Cir. 1989), affg. T.C.
Memo. 1988-410.
The use of the bank deposits method for computing income has
long been sanctioned by the courts. Estate of Mason v.
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