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Respondent has not asserted that the information provided by
petitioner is incorrect. Compare Ryza v. Commissioner, T.C.
Memo. 1977-64, where respondent presented evidence of unexplained
deposits to establish that the taxpayer's base year income was
not correct as reported. See also Royster v. Commissioner, T.C.
Memo. 1985-258, affd. 820 F.2d 1156 (11th Cir. 1987).
Respondent's position is simply that petitioner has not said or
done enough to prove base year income.
There is no evidence in this case that the taxable income
for 1976 and 1977 is not accurate as claimed by petitioner.
Compare Padow v. Commissioner, T.C. Memo. 1987-250, affd. 843
F.2d 1388 (4th Cir. 1988); Olive v. Commissioner, T.C. Memo.
1983-195; Abernathy v. Commissioner, T.C. Memo. 1978-370. In
fact, respondent accepted petitioner's base year income for 1976
and 1977 when the parties resolved the deficiencies for 1978 and
1979. While we do not suggest that respondent is bound by
acceptance of the base year income in resolving the 1978 and 1979
tax years, respondent has not presented any assertions or
argument that she has reason to not accept those amounts for
purposes of this case. Nor has respondent taken any other action
to show that the base years' taxable income is not correct. Cf.
Ryza v. Commissioner, supra.
We hold that petitioner is entitled to income averaging for
the taxable years 1980 and 1981 utilizing the base year income
reflected in this record.
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