- NEXTRECORD -
respect of petitioner's checking and savings accounts with that
institution, corroborates respondent's determination of net
deposits5 and supports respondent's bank deposits analysis in
general.
After analyzing petitioner's bank deposits, respondent
proceeded with her determination of unreported income as follows:
(1) Unreported self-employment income
net taxable deposits
(a) checking account $14,340.00
(b) savings account
total deposits 3,456.07
less: interest -626.07 2,830.00
17,170.00
less: reported gross receipts -4,500.00 $12,670.00
(2) Unreported interest income
total interest income 626.07
less: reported interest income -100.00 526.07
Total 13,196.07
OPINION
We begin with a fundamental principle of tax litigation,
namely, that, as a general rule, the Commissioner's
determinations are presumed correct, and the taxpayer bears the
burden of proving that those determinations are erroneous. Rule
142(a); INDOPCO Inc. v. Commissioner, 503 U.S. 79, 84 (1992);
Welch v. Helvering, 290 U.S. 111, 115 (1933).
We think that the foregoing principle is applicable in the
present case for two reasons. First, the record conclusively
5 Although respondent's analysis focuses on the "net
deposits" to petitioner's bank accounts, the documentary evidence
demonstrates that petitioner never received any cash back when he
made deposits. Thus, there is no difference between gross
deposits and net deposits.
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