Richard and Rebecca Adair - Page 7




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          determinations are erroneous.  See Rule 142(a); Welch v.                    
          Helvering, 290 U.S. 111, 115 (1933).                                        
               Generally, bank deposits are treated as prima facie evidence           
          of taxable income.  See Woodall v. Commissioner, 964 F.2d 361,              
          364 (5th Cir. 1992), affg. T.C. Memo. 1991-15; Parks v.                     
          Commissioner, 94 T.C. 654, 658 (1990); Tokarski v. Commissioner,            
          87 T.C. 74, 77 (1986).                                                      
               Where taxpayers fail to present evidence regarding the                 
          proper division between them of income received from a jointly              
          operated business, respondent and the courts may approximate the            
          amount of income to be charged to each taxpayer.  See Arouth v.             
          Commissioner, T.C. Memo. 1992-679.  An equal division of income             
          may be appropriate where taxpayers fail to provide any evidence             
          of a more appropriate division of the income.  See Cannon v.                
          Commissioner, 533 F.2d 959, 960 (5th Cir. 1976), affg. Ash v.               
          Commissioner, T.C. Memo. 1974-219; Puppe v. Commissioner, T.C.              
          Memo. 1988-311.                                                             
               Where evidence exists that taxpayers incurred expenses                 
          relating to their business, it may be appropriate to allow an               
          estimate of the business expenses.  See Cohan v. Commissioner, 39           
          F.2d 540, 543-544 (2d Cir. 1930); Vanicek v. Commissioner, 85               
          T.C. 731, 743 (1985); Sherrer v. Commissioner, T.C. Memo. 1999-             
          122.                                                                        








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