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Generally, respondent’s determinations are presumed correct,
and taxpayers have the burden of proving that respondent’s
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
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