Albert R. Cujas, Jr., & Susan W. Cujas - Page 6

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            F.2d 358, 361 (9th Cir. 1979), revg. 67 T.C. 672 (1977).  If the                             
            Commissioner fails to provide sufficient evidence, the deficiency                            
            determination is arbitrary, and the Commissioner will bear the                               
            burden of coming forward with evidence to establish the existence                            
            and amount of any deficiency.  Jackson v. Commissioner, supra.                               
                  Based on information reported on Forms 1099, respondent                                
            determined that in 1992 petitioners received income from several                             
            sources.  Based on BLS data, respondent determined that in 1993                              
            petitioners received self-employment income.  We now address the                             
            validity of each of these determinations.                                                    
                  A.  1992 Tax Year                                                                      
                  Respondent determined that during 1992 each petitioner                                 
            received income from IRA distributions, self-employment, and                                 
            interest, and that Mrs. Cujas received dividend income.  These                               
            determinations were based on information reported on Forms 1099                              
            issued by the payors.                                                                        
                  Mrs. Cujas conceded that during 1992 she received funds from                           
            the sources and in the amounts determined by respondent.  She has                            
            failed to establish that these funds are excludable from her                                 
            gross income.  Accordingly, we hold that these funds are                                     
            includable in her gross income.  See secs. 61(a), 72, 408(d)(1).                             
                  In his brief, Mr. Cujas conceded that during 1992 he                                   
            received:  (1) $25,623 from his IRA at the State Employees Credit                            
            Union; (2) $2,302 from Blue Cross/Blue Shield of North Carolina;                             





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