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tax generally does not apply to compensation paid to an employee
by an employer. Sec. 1402(c)(2) and (3).
If a taxpayer fails to maintain adequate books and records
from which the taxpayer's income can be determined, respondent is
entitled to reconstruct the taxpayer's income through the use of
any reasonable method. Holland v. United States, 348 U.S. 121
(1954). Reliance upon BLS statistics in the reconstruction of a
taxpayer's income has been held to be reasonable. Pollard v.
Commissioner, 786 F.2d 1063 (11th Cir. 1986), affg. T.C. Memo.
1984-536; Giddio v. Commissioner, 54 T.C. 1530, 1533 (1970).
In this case it is undisputed that petitioner was engaged in
an income-producing activity during each of the years 1989
through 1992, and we find that respondent's method of
reconstructing petitioner's income for each year was reasonable
under the circumstances. That being the case, the determinations
made in the notice of deficiency are presumed correct, and
petitioner bears the burden of proving otherwise. Rule 142(a);
Welch v. Helvering, 290 U.S. 111, 115 (1933); see Jackson v.
Commissioner, 73 T.C. 394 (1979).
In support of his burden of proof petitioner offered little
more than his testimony, candidly admitting that he kept no
record of his earnings during the years in issue and that his
recollection as to the specifics of each year has faded.
Although admitting to certain employment during the years in
issue, petitioner maintains that he never earned as much as
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