- 15 - Circuit, the presumption of correctness will not be given effect unless the Commissioner produces "evidence linking the taxpayer to the tax-generating activity in cases involving unreported income, whether legal or illegal." Anastasato, supra at 887. In these cases, respondent's notice of deficiency for 1987 is based on petitioner's failure to report an attorney's fee (or attorney's referral fee) of $408,318. We conclude there is sufficient evidence that petitioner was entitled to an attorney's fee (e.g., the retainer agreement). Petitioner claims that respondent lost petitioner's 1987 return. Petitioner, however, has failed to propose any findings of fact in support of that claim, and we have made no such finding. Petitioner has failed to carry his burden of proof on that point. Moreover, even if facts did support that claim, petitioner has failed to show that respondent's determination was arbitrary. Perhaps respondent had abstracted data from petitioner's return and no longer needed it. Indeed, it is difficult to understand just what petitioner's complaint is. Petitioner is not claiming that he did report the attorney's fee on his return and that respondent is double charging him. Whether respondent had petitioner's return or not, respondent charged petitioner with income respondent had reason to believe petitioner did not report. There is nothing arbitrary about that.Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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