- 13 - and $67,255.7610 in 1990. Agent Oertel’s testimony and analysis leave no doubt that petitioner omitted from income the full amounts identified as taxable to him by respondent for the years in issue, as adjusted by respondent’s concession for 1990, as described below. Once the Commissioner makes a prima facie case of unreported income using the bank deposits and specific identification methods, and has made a determination in the notice of deficiency, the taxpayer bears the burden of proving that the deposits identified by the Commissioner as unreported income do not in fact represent unreported income. See DiLeo v. Commissioner, 96 T.C. 858, 869 (1991) (“petitioners, not the Government, bear the burden of proving that respondent's determination of underreported income, computed using the bank deposits method of reconstructing income, is incorrect”), affd. 959 F.2d 16 (2d Cir. 1992). At no time during the trial did petitioner attempt to introduce any evidence to show: (1) That the unreported income identified by respondent had in fact never been received by him, (2) that the unreported income identified by respondent had in 10This consists of $43,055.89 identified using the deposit method from responses to Agent Bricker’s mailing, $7,782 identified using the deposit method from indicia on the checks, and $16,417.87 identified from the specific evidence provided by PAC customers in response to Agent Bricker’s mailing.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011