Dennis J. Tang and Alice Shu-Ling Tang - Page 11

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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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