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conclusive, bank deposits are prima facie evidence of income.
Boyett v. Commissioner, 204 F.2d 205 (5th Cir. 1953), affg. a
Memorandum Opinion of this Court; Hague Estate v. Commissioner,
132 F.2d 775 (2d Cir. 1943), affg. 45 B.T.A. 104 (1941); Tokarski
v. Commissioner, 87 T.C. 74, 77 (1986); Estate of Mason v.
Commissioner, supra at 656-657. Taxpayers generally bear the
burden of proving the Commissioner’s determinations are erroneous
and, in the case of a bank deposits analysis, must show the
deposits came from a nontaxable source. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933); Harper v. Commissioner, 54 T.C.
1121, 1129 (1970).
In the years at issue, petitioner did not maintain
contemporaneous books and records for Capital Builders. The
foundation for the deficiencies was derived from JPI’s Forms
1099-MISC for petitioner’s years at issue and respondent’s bank
deposit analysis for the same periods. Other than certain
deposits conceded by respondent to be nontaxable, petitioner
failed to produce evidence to show that any other bank deposit in
1999 or 2000 was nontaxable income. See Harper v. Commissioner,
supra at 1129. The Court finds respondent’s use of the bank
deposits method to reconstruct petitioner’s taxable income was
neither arbitrary nor unreasonable. See Estate of Mason v.
Commissioner, supra at 656-657. Therefore, the Court sustains
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