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cooperated with the Commissioner, and introduced during the Court
proceeding credible evidence with respect to the factual issue.
Although neither party alleges the applicability of section
7491(a), we conclude that the burden of proof has not shifted to
respondent with respect to the unreported income. Respondent has
the burden of production with respect to the accuracy-related
penalty, however. Sec. 7491(c); Higbee v. Commissioner, 116 T.C.
438, 446-447 (2001). Therefore, petitioner bears the burden of
showing that the deposits made to his account, checks cashed, and
checks written on his account, were not includable in his 2000
income as determined by respondent. Bank deposits have been held
to be prima facie evidence of income. Tokarski v. Commissioner,
87 T.C. 74, 77 (1986); Estate of Mason v. Commissioner, 64 T.C.
651, 656 (1975), affd. 566 F.2d 2 (6th Cir. 1977).
1. Unreported Income
As stated previously, respondent determined that petitioners
failed to report income in tax year 2000 in the amount of
$30,468. However, petitioner argues that such payments were made
pursuant to a contractor relationship he had with Mr. Muhammad,
and, therefore, petitioner claims he was merely a conduit between
Mr. Muhammad and the subcontractors that petitioner hired to
perform the work.
Section 61(a) defines gross income as “all income from
whatever source derived,” unless otherwise provided. The Supreme
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