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bank deposits method of income reconstruction to determine the
correct amount of Kanter’s taxable income for 1982.
Respondent’s determination was not a so-called naked
assessment, nor was it arbitrary or excessive. See, e.g.,
Weimerskirch v. Commissioner, 596 F.2d 358 (9th Cir. 1979), revg.
67 T.C. 672 (1977). Respondent offered ample evidence linking
Kanter to income-producing activities during 1982 including his
law practice and the fees and commissions Kanter earned from,
among others, The Five. Respondent identified four specific
deposits that were determined to represent unreported income.
Therefore, respondent’s determination of unreported income is
entitled to the normal presumption of correctness, and there is
no basis for shifting to respondent either the burden of proof or
the burden of going forward with the evidence. See, e.g., United
States v. Esser, 520 F.2d 213, 217 (7th Cir. 1975).
As indicated, the record includes Kanter’s check register,
Gallenberger’s spreadsheets and summaries, and Gallenberger’s
testimony regarding the methods she used in preparing the
Kanters’ tax return for 1982. Considering all the circumstances,
particularly Kanter’s and Gallenberger’s misconduct as outlined
by the District Court during the summons enforcement proceedings,
we conclude it was manifestly unreasonable to conclude Kanter’s
testimony (if it exists) and Gallenberger’s testimony was
credible. See United States v. Administration Co., 74 AFTR 2d
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