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Commissioner, 65 T.C. 87 (1975), affd. per curiam 540 F.2d 821
(5th Cir. 1976). By contrast, the Commissioner has the burden of
proof with respect to the issue of fraud with intent to evade
tax, and that burden of proof must be carried by clear and
convincing evidence. Sec. 7454(a); Rule 142(b). The
Commissioner also has the burden of proof as to the assertion of
an additional deficiency. Rule 142(a).
Petitioners contend that they have presented sufficient
evidence to establish that respondent's determinations were
erroneous, and, therefore, the burden shifted to respondent to go
forward with the evidence. We disagree. Petitioners have failed
to show on this record that respondent's deficiency
determinations were arbitrary and excessive or, for that matter,
erroneous. Respondent's determinations were made after extensive
and comprehensive audits and after investigation by special
agents of the Internal Revenue Service for possible criminal
income tax evasion. Judged by any standard, respondent's
determinations were reasonable. Consequently, the burden of
going forward with the evidence did not shift to respondent. The
burden of proof with respect to the deficiencies remained with
petitioners. See Marcello v. Commissioner, 380 F.2d 499, 507
(5th Cir. 1967).
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