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substantive evidence that the taxpayer received unreported income
before she may rely on the presumption that her determination is
correct. Delaney v. Commissioner, 743 F.2d 670, 671 (9th Cir.
1984), affg. T.C. Memo. 1982-666; Weimerskirch v. Commissioner,
596 F.2d 358, 360 (9th Cir. 1979), revg. 67 T.C. 672 (1977).
Once the Commissioner has carried her initial burden of
introducing some evidence linking the taxpayer with an income-
producing activity, the burden is on the taxpayer to rebut the
presumption by establishing by a preponderance of the evidence
that the deficiency determination is arbitrary or erroneous.
Rapp v. Commissioner, 774 F.2d 932, 935 (9th Cir. 1985). Peti-
tioner argues that the deficiencies determined by respondent in
her notice of deficiency are in fact arbitrary and excessive.
There is no dispute that petitioner performed certain services
for Dr. Chan, nor is there a dispute that Dr. Chan paid some
money on account of the services petitioner performed. Peti-
tioner's characterization of the determination as arbitrary is
not sufficient to overcome the presumption of correctness. Id.;
Petzoldt v. Commissioner, 92 T.C. 661, 690 (1989). Respondent,
in the case herein, has come forward with sufficient evidence
linking petitioners with unreported income; therefore, the burden
is upon petitioners to establish that the deficiency determina-
tion is arbitrary or erroneous. The record does not support a
finding that petitioners have carried their burden with respect
to this issue.
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