- 14 -
income to petitioner, even though he was married in 1983, does
not make the deficiency notice arbitrary or unreasonable. By
virtue of petitioner's failure to file the Federal return,
respondent issued a deficiency notice without information as to
petitioner's 1983 marital status.
Petitioner appears to suggest that the proof of claim that
was filed in the bankruptcy court somehow limits the amount of
tax owed by petitioner, and, therefore, the deficiency notice is
arbitrary and unreasonable. However, our review of the proof of
claim indicates that as of December 17, 1984, petitioner owed a
penalty of $520, interest of $153.49, and that no income tax had
been assessed. The proof of claim is irrelevant to this
proceeding.
Further, petitioner's argument that the alleged IRS
reputation for mistakes is a basis for determining that the
notice of deficiency is arbitrary and unreasonable is without
merit.
Turning to petitioner's argument regarding the foundational
proof required of respondent, the U.S. Court of Appeals for the
Ninth Circuit, the court to which an appeal in this case would
lie, requires that respondent come forward with some substantive
evidence establishing a minimal evidentiary foundation for her
determination that the taxpayer received unreported income before
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011