Deborah Y. and Donald J. Everhart - Page 8

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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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