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Howell Street, in fairly small denominations, scattered on
petitioner's bed. Moreover, Mr. Shaw could not clearly recall if
the money he observed on the bed was petitioner's or his own.
Finally, petitioner argues that where, as here, respondent
attempts to prove a likely source of income and falls short, but
successfully negates petitioner's alleged nontaxable source,
respondent should nevertheless not prevail. Petitioner asserts
that other cases holding that respondent need only negate
nontaxable sources have in fact concluded that respondent also
showed a likely source. However, this Court in Parks v.
Commissioner, 94 T.C. at 661, held that, where respondent
presented no evidence of a likely source, negativing nontaxable
sources was sufficient, by itself, to prove an underpayment in a
fraud case. (In a fraud case, respondent has the burden of
proving by clear and convincing evidence that some part of an
underpayment was due to fraud, DiLeo v. Commissioner, 96 T.C. at
873, a higher standard of proof than the preponderance of the
evidence standard applicable in the case before us.)
Petitioner's attempt to distinguish Parks v. Commissioner,
supra, on the ground that, in that case, no attempt was made to
prove a likely source, is unavailing. We have already pointed
out that the Commissioner need only connect bank deposits and
expenditures to a likely source, or, where a taxpayer alleges a
non-taxable source, negate that source; the Commissioner need not
do both. United States v. Massei, 355 U.S. 595 (1958).
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