- 39 -
includable in income unless specifically exempted by law.”
Respondent’s ground for the unreported deposits of $33,980 is:
“Business gross receipts were not included in the amount shown.”
During 1995, Curtis Shirley was self-employed as a computer
consultant, performing those services, personally, for
compensation. The C. Shirleys had one or more bank accounts, and
Curtis Shirley extended credit to his customers. On the
C. Shirleys’ 1995 return, they reported no income from any
source. Section 61(a)(4) includes interest as an item of gross
income. Together, section 61(a)(1) and (2) include as items of
gross income, compensation for services, including fees,
commissions, fringe benefits, and similar items, and gross income
derived from business. Not only has respondent shown likely
sources for the income items in question, but, with respect to
the $33,980 of unreported deposits, a bank deposit is prima facie
evidence of income and respondent need not prove a likely source
of that income. Tokarski v. Commissioner, 87 T.C. 74 (1986); see
also Factor v. Commissioner, 281 F.2d 100, 116 n.28 (9th Cir.
1960). The C. Shirleys have proposed no findings of fact
relative to either the interest income or the bank deposits.
They have failed to prove that they did not have the interest
income in question, and we find that they did have unreported
income of $33,890.
Page: Previous 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 NextLast modified: May 25, 2011