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ground that copies of petitioner’s bank records obtained by
subpoena from petitioner’s bank, Bank of America NA, show
deposits in 1999 of $31,007.15 and $3,084.51, from Icon Trading,
Inc., and with respect to petitioner’s golf instruction business,
Count Yogi Co., respectively. Respondent did not take those
deposits into account in his adjustments to petitioner’s income
for 1999. Respondent correctly argues that, nevertheless, bank
deposits are prima facie evidence of income. Tokarski v.
Commissioner, 87 T.C. 74, 77 (1986); see also Factor v.
Commissioner, 281 F.2d 100, 116, n.28 (9th Cir. 1960), affg. T.C.
Memo. 1958-94. Respondent asks for no increased deficiency for
1999 but only that we sustain the deficiency of $3,299 that he
determined. Petitioner made no objection to the Bank of America
NA records on the grounds of relevance when they were proffered
by respondent, and we interpret that failure as implying
petitioner’s consent to try the issue of his unreported income
from bank deposits described in those records. See Rule
41(b)(1). We find that, for 1999, petitioner failed to report
items of income of $31,007.15 and $3,084.51, as evidenced by
respondent’s exhibits showing bank deposits in those amounts.
Respondent did not err in determining the deficiencies.
II. Additions to Tax
A. Introduction
Section 6651(a)(1) provides for an addition to tax in the
event a taxpayer fails to file a timely return (determined with
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