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are attributable to a nontaxable source. Calhoun v. United
States, 591 F.2d 1243, 1245 (9th Cir. 1978).
Petitioner argues generally that the various deposits that
respondent has treated as unexplained for 1987 and 1988 represent
transfers among the various bank accounts and are not properly
treated as income.
With limited records available, petitioner established at
trial that several of the deposits into accounts 01150 and 01206
represented transfers among those two accounts, and respondent
has adjusted the unreported income determined from her bank
deposits analyses to reflect that evidence. Petitioner has not
established that the remaining deposits reflected in respondent’s
bank deposits analyses are attributable to nontaxable sources,
and petitioner has not satisfied her burden of proving that the
remainder of the unexplained deposits should not be treated as
includable in Mr. Makalintal’s and her joint income for 1987 and
1988.
For 1987 and 1988, the unexplained deposits of $501,134 and
$332,601, as determined and adjusted by respondent, are to be
treated as additional income and are to be charged to
Mr. Makalintal and to petitioner.
Innocent Spouse Issue
In light of our findings and conclusion in favor of
petitioner with regard to 1986 on the substantive tax adjustment,
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