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In the cases at hand, respondent used the bank deposits
method to determine that petitioner underreported income for the
years at issue. Because the living trust was established by
petitioner as a revocable trust, of which he was beneficiary and
trustee, respondent attributed income deposited into the trust
bank account or reported on the fiduciary income tax returns to
petitioner. Secs. 61, 671. Petitioner has conceded that all of
the trust’s income was properly taxable to him.
For 1992, petitioner did not file a fiduciary income tax
return. He reported both personal and business income on his
individual income tax return. Respondent’s only assertion of
unreported income for that year related to the J&J Trucking
payments (totaling $5,598.68) that were deposited into the trust
bank account during 1992. Petitioner did not provide any
documentary evidence showing that the periodic J&J Trucking
payments were not income to him. In testimony, petitioner
neither confirmed nor denied receiving the amounts, stating that
“the documents should speak for themselves”. Accordingly,
petitioner has failed to meet his burden of proving that
respondent’s determination was erroneous. See Rule 142(a)(1).
For 1993, petitioner filed separate individual and fiduciary
income tax returns, reporting all his business and personal
income on the fiduciary return. The trust bank account
statements reflected deposits of 10 checks issued by J&J Trucking
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