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not set forth any specific facts or presented any evidence nor
has she disputed the assertions made by petitioner. Based on
this record, we find that petitioner has established correct
taxable income for 1976 and 1977. Having established that, there
is no impediment to petitioner's obtaining the benefits of income
averaging for the taxable years 1980 and 1981.
Petitioner argues that there is ample case law that stands
for the proposition that, when a taxpayer presents respondent
with evidence of correct taxable income for a base year,
respondent must do more than simply argue that the tax year has
not been examined. Lynch v. Commissioner, T.C. Memo. 1983-173.
In this case, petitioner has provided some documentary evidence
and made factual assertions that tend to establish correct
taxable income for 1976 and 1977. The documents consist of a
transcript of account reflecting adjusted gross income for 1976
and 1977, income averaging schedules attached to tax returns for
1978 and 1979 reflecting taxable income for 1976 and 1977, a
statutory notice of deficiency for 1978 and 1979, and a
settlement agreement for 1978 and 1979. Neither the statutory
notice nor the settlement agreement disallowed use of income
averaging based on the income for 1976 and 1977 reported on the
schedules attached to the 1978 and 1979 returns. Moreover,
petitioner has filed an affidavit making unrefuted assertions
that the 1976 and 1977 taxable income was correct as so reported.
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