- 7 -
however, "We perceive no need to refute these arguments with
somber reasoning and copious citation of precedent; to do so
might suggest that these arguments have some colorable merit."
Crain v. Commissioner, 737 F.2d 1417, 1417 (5th Cir. 1984).
(A) Arbitrariness of respondent's determinations in
notice of deficiency
Petitioner repeatedly claims that respondent's notice of
deficiency was "arbitrary, capricious, and without foundation".
Generally, the notice of deficiency is presumed correct, and the
taxpayer carries both the burden of proof and the burden of going
forward with evidence. Dellacroce v. Commissioner, 83 T.C. 269,
280 (1984). When a taxpayer establishes that a statutory notice
is arbitrary or without foundation, however, the Commissioner
bears the burden of going forward with evidence. Alanis v.
Commissioner, T.C. Memo. 1995-263. The cases dealing with
arbitrary determinations, however, involve issues of omitted
income, where the Commissioner failed to introduce any
substantive evidence indicating that the taxpayer had received
income as determined in the notice of deficiency. E.g.,
Weimerskirch v. Commissioner, 596 F.2d 358 (9th Cir. 1979), revg.
67 T.C. 672 (1977). In this case, respondent's determination was
based upon petitioner's failure to establish that he is entitled
to claimed deductions.
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