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Commissioner, 79 T.C. 995 (1982), affd. per curiam 748 F.2d 331
(6th Cir. 1984); Gajewski v. Commissioner, supra at 199.
However, fraud should not be imputed or presumed, Beaver v.
Commissioner, 55 T.C. 85, 92 (1970), and a finding of fraud may
not be bootstrapped to a taxpayer's failure to prove the
Commissioner's deficiency determination erroneous. Drieborg v.
Commissioner, 225 F.2d 216, 218 (6th Cir. 1955), affg. in part a
Memorandum Opinion of this Court. Parks v. Commissioner, supra
at 660-661; Petzoldt v. Commissioner, 92 T.C. 661, 700 (1989);
Estate of Beck v. Commissioner, 56 T.C. 297, 363 (1971).
When allegations of fraud are intertwined with unreported
and indirectly reconstructed income, the Commissioner can prove
an underpayment by one of two alternate methods. United States
v. Massei, 355 U.S. 595 (1958). First, a likely source of the
unreported income can be proved. Holland v. United States,
supra; DiLeo v. Commissioner, supra at 873-874; Nicholas v.
Commissioner, 70 T.C. 1057 (1978); Otsuki v. Commissioner, supra
at 105-106. Second, if the taxpayer alleges a nontaxable source,
the Commissioner can disprove the alleged source. United States
v. Massei, supra; Kramer v. Commissioner, 389 F.2d 236, 239 (7th
Cir. 1968), affg. T.C. Memo. 1966-234; DiLeo v. Commissioner,
supra at 873-874. The Commissioner may disprove an alleged
specific nontaxable source of income by showing that the
reconstruction of income is accurate and that the taxpayer's
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