- 34 -
96 T.C. 858, 867 (1991), affd. 959 F.2d 16 (2d Cir. 1992).
Though not conclusive, bank deposits are prima facie evidence of
income. See Estate of Mason v. Commissioner, 64 T.C. 651, 656-
657 (1975), affd. 566 F.2d 2 (6th Cir. 1977); see also Price v.
United States, 335 F.2d 671, 677 (5th Cir. 1964) (the bank
deposits method assumes that all money deposited in a taxpayer's
bank account during a given period constitutes gross income);
Tokarski v. Commissioner, 87 T.C. 74, 77 (1986); Jones v.
Commissioner, 29 T.C. 601 (1957). Where the taxpayer has failed
to maintain adequate records as to the amount and source of his
or her income, and the Commissioner has determined that the
deposits are income, the taxpayer has the burden of showing that
the determination is incorrect. See Rule 142(a); Clayton v.
Commissioner, 102 T.C. 632, 645 (1994); Parks v. Commissioner,
supra; Estate of Mason v. Commissioner, supra. Furthermore, the
Court of Appeals for the Eleventh Circuit, to which these cases
are appealable, has accepted the bank deposits method of income
reconstruction. See United States v. Carter, 721 F.2d 1514, 1538
(11th Cir. 1984) (citing United States v. Boulet, 577 F.2d 1165
(5th Cir. 1978)).
Petitioner was engaged in illegal narcotics activities. In
addition, the parties stipulated that in 1993 petitioner
testified during his criminal trial in Florida as follows:
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