What is the government's burden of proof in a bank deposit case?

As in a net worth case, Holland v. United States, supra, 348 U.S. at 132-35, an essential element of the government's burden of proof in a bank deposits case is to establish an accurate cash on hand figure for the beginning of the taxable year. If the taxpayer's deposits or other expenditures during the relevant year "came from a safety deposit box in a bank or from a hoard at home, obviously they are not `income' when taken from their storage place and deposited in a checking account nor when spent." United States v. Frank, 245 F.2d 284, 287 (3 Cir.), cert. denied, 355 U.S. 819 (1957). Thus, the government must prove with reasonable certainty the amount of undeposited cash at the beginning of the year so that an appropriate amount may be subtracted from the total of deposits made during the taxable year.¹³

[487 F.2d 843]