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Sec. 7454(a); Rule 142(b). Where fraud is determined for more
than 1 year, the Commissioner's burden applies individually to
each year. Barbuto v. Commissioner, T.C. Memo. 1991-342 (citing
Estate of Stein v. Commissioner, 25 T.C. 940, 959-963 (1956),
affd. per curiam sub nom. Levine v. Commissioner, 250 F.2d 798
(2d Cir. 1958)). To satisfy the burden of proof, the
Commissioner must show two things: (1) An underpayment exists,
and (2) the taxpayer intended to evade taxes known to be owing by
conduct intended to conceal, mislead, or otherwise prevent the
collection of taxes. Parks v. Commissioner, 94 T.C. 654, 660-661
(1990); Petzoldt v. Commissioner, 92 T.C. 661, 700 (1989).
The first element requires respondent to establish the
existence of an underpayment of tax. To prove the underpayment
respondent cannot rely solely on petitioner's failure to
discharge his burden of proving error in respondent's
determination of deficiencies. Otsuki v. Commissioner, 53 T.C.
96, 106 (1969). Respondent may prove an underpayment by proving
a likely source of the unreported income, Holland v. United
States, 348 U.S. at 137-138, or, where the taxpayer alleges a
nontaxable source, by disproving the specific nontaxable source
so alleged, United States v. Massei, 355 U.S. 595 (1958).
Through the bank deposits method, respondent has proven
petitioner received income from his practice of radiology that he
did not report on his Federal income tax returns for each of the
years at issue. Additionally, petitioner took deductions for
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