Yu-Yang Wu - Page 16




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          by payors who respondent could not identify from the information            
          provided by petitioner’s bank.                                              
               Given the percentage of responses to Agent Bricker’s letter            
          that showed unreported income from the sale of computer products            
          and services (82 percent of those who responded stated that their           
          payment was for PAC computer equipment and services, and none of            
          this revenue was reported on petitioner’s or PAC’s Federal income           
          tax returns), there is a high probability, amounting to more than           
          mere suspicion, that a substantial proportion of the unidentified           
          or unproven deposits also represent unreported taxable income.              
          Petitioner offered no credible evidence (and maintained no                  
          credible records) as to the source or nature of those deposits.             
               Although it’s not our job to tell respondent how to do his             
          job, see United States v. Payner, 447 U.S. 727, 731, 737 (1980)             
          (Burger, C.J., concurring), we observe that respondent                      
          established substantial amounts of unexplained deposits that were           
          not included in the deficiency notice.12                                    
               We have affirmed determinations of unreported income under             
          the bank deposits method where the Commissioner has offered no              
          evidence as to the source of the deposits, requiring the                    
          Commissioner to show only that unexplained deposits were made to            

               12Our concerns are aggravated by the evidence in the record            
          that during 2 of the taxable years in issue and the year                    
          following, petitioner purchased four parcels of real property for           
          $1.925 million, making aggregate downpayments of $755,038.  See             
          supra note 2.                                                               





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