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accounts entitled “Michael Downing Plumbing Co.”; the third and
fourth were personal accounts.
Table 6 sets forth the aggregate of the balances in the
listed accounts at the specified dates.
Table 6
Dates Aggregate Amounts
Jan. 1, 1994 $3,584
Dec. 31, 1994 2,759
Dec. 31, 1995 1,113
I. Bank Deposits Method Omitted Income
Tables 7 (for 1994) and 8 (for 1995) set forth our findings
as to the bank deposits method for determining unreported
income.8 The column headed “Respondent” takes into account
respondent’s concessions, by stipulation or otherwise, including
those made in the course of proceedings occurring after the
completion of the briefing process.9 The columns headed “Court--
Fraud” and “Court--Nonfraud” represent, respectively, our
findings based on the clear-and-convincing-evidence burden of
8 Although both sides refer to respondent’s analysis as
“the bank deposits method”, it appears that the better term is
“the bank deposits and cash expenditures method”. See generally
United States v. Abodeely, 801 F.2d 1020, 1023-1024 (8th Cir.
1986). For convenience, we follow the parties’ terminology and
refer to it as the bank deposits method.
9 In the notices of deficiency respondent determined that
unreported Schedule C gross receipts were $28,857 for 1994 and
$144,369 for 1995. As tables 7 and 8 show, respondent’s position
now is that unreported Schedule C gross receipts were $24,425 for
1994 and $84,085 for 1995.
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