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deficiencies is incorrect. See Welch v. Helvering, 290 U.S. 111,
115 (1933).
A. Petitioners' Income
It is a taxpayer's responsibility to maintain adequate books
and records sufficient to establish his or her income. See sec.
6001; DiLeo v. Commissioner, 96 T.C. 858, 867 (1991), affd. 959
F.2d 16 (2d Cir. 1992). When a taxpayer fails to maintain
adequate records, the Commissioner may determine income under the
bank deposits method. DiLeo v. Commissioner, supra at 867.
A bank deposit is prima facie evidence of income. Id. at
868; Tokarski v. Commissioner, 87 T.C. 74, 77 (1986); Estate of
Mason v. Commissioner, 64 T.C. at 656; see also Hague Estate v.
Commissioner, 132 F.2d 775, 777-778 (2d Cir. 1943), affg. 45
B.T.A. 104 (1941). The bank deposits method of reconstruction
assumes that all money deposited into a taxpayer's account is
taxable as income unless the taxpayer can show a nontaxable
source for the income. See Price v. United States, 335 F.2d 671,
677 (5th Cir. 1964); DiLeo v. Commissioner, supra at 868. The
use of the bank deposits method for computing income has long
been sanctioned by the courts. DiLeo v. Commissioner, supra at
867; Estate of Mason v. Commissioner, supra at 656.
The fact that the Commissioner was not completely correct
does not invalidate the method employed. Marcello v.
Commissioner, 380 F.2d 494 (5th Cir. 1967), affg. in part and
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