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1989 Date Amount Location Purchased
Apr. 20 $3,000 Commerce Savings
June 8 9,000 Commerce Savings
June 8 10,000 Bank of Alex Brown
June 12 9,000 Wells Fargo
June 14 1,432 Wells Fargo
June 14 2,594 Wells Fargo
Respondent concedes that the source of the $10,000 cashier’s
check would not result in income to McDonald.
McDonald’s wife remitted three checks to Maynard during 1989
in the following amounts: $995.90, $550, and $699.50.
McDonald’s daughter also remitted a $2,500 check to Maynard
during 1989.
OPINION
Procedural Question--Initially, we consider petitioners’
procedural argument that the notices of deficiency are "arbitrary
and capricious". Petitioners argue that respondent should have
the burden of going forward with the evidence because
respondent’s determination is arbitrary and capricious and that
respondent’s determination should not enjoy a presumption of
correctness. See Jackson v. Commissioner, 73 T.C. 394, 403
(1979); Weimerskirch v. Commissioner, 596 F.2d 358, 361 (9th Cir.
1979), revg. 67 T.C. 672 (1977). By contending that the notices
are arbitrary, petitioners are essentially asking us to look
behind the notices of deficiency to examine the evidence used by
respondent in making her determinations. Riland v. Commissioner,
79 T.C. 185, 201 (1982); Jackson v. Commissioner, supra at 400;
Greenberg's Express, Inc. v. Commissioner, 62 T.C. 324, 327
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