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required to maintain records sufficient to establish the amount
of his or her income. Sec. 6001; sec. 1.6001-1(a), (e), Income
Tax Regs. In the absence of adequate books and records, the
Commissioner may reconstruct a taxpayer’s income by any
reasonable method. See sec. 446(b); Holland v. United States,
348 U.S. 121 (1954). The bank deposits method has long been
recognized as a reasonable method to reconstruct income where the
taxpayer’s records are inaccurate or incomplete. See Estate of
Mason v. Commissioner, 64 T.C. 651, 656 (1975), affd. 566 F.2d 2
(6th Cir. 1977). “Though not conclusive, bank deposits are prima
facie evidence of income.” Id.
In an attempt to explain the discrepancy between the gross
receipts reported and his bank deposits for the year at issue,
petitioner testified that he transferred funds from savings
accounts and deposited funds received from loans that he
previously had made. However, petitioner presented absolutely no
evidence to corroborate his testimony. It is well settled that
we are not required to accept a taxpayer’s self-serving testimony
in the absence of corroborating evidence. Niedringhaus v.
Commissioner, 99 T.C. 202, 212 (1992).
We find the testimony given by petitioner to be too vague
and based too much upon conjecture to establish that the bank
deposits totaling $9,363 relate to transfers and loans. No
evidence in the record establishes that the deposits made into
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