Doyle A. King - Page 14

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          to come forward with enough evidence to support a finding                   
          contrary to the Commissioner's determination. Rockwell v.                   
          Commissioner, 512 F.2d 882, 885 (9th Cir. 1975), affg. T.C.                 
          Memo. 1972-133. The Court of Appeals for the Ninth Circuit has              
          characterized the burden of proof as a burden of persuasion.                
          Id.                                                                         
               In the case before us respondent's initial determinations,             
          though based upon CPI extrapolations, are entitled to the                   
          presumption of correctness which petitioners have failed to                 
          overcome. They have failed to introduce any reliable evidence               
          on the basis of which the Court could arrive at a conclusion as             
          to their tax liabilities different from that determined by                  
          respondent (giving effect, of course, to certain concessions by             
          respondent).                                                                
               The same may not be said of the increased deficiencies                 
          asserted in the amended answer. The CPI extrapolations,                     
          standing alone without the presumption of correctness that the              
          deficiency notices afford are insufficient to satisfy                       
          respondent's burden of proof in this case. CPI extrapolations               
          are, almost by definition, educated guesses which respondent                
          may reasonably rely upon in deficiency notices under conditions             
          similar to those in this case, which taxpayers may refute by                
          introducing specific objective evidence showing the correct tax             
          liability. But here respondent has the burden of proof as to                






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