Albert R. Cujas, Jr., & Susan W. Cujas - Page 8

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            Commissioner, 43 T.C. 824, 831 (1965).  When the Commissioner has                            
            evidence of taxable income but does not have information                                     
            available to ascertain the amount of such income, the                                        
            Commissioner may use BLS data to determine that the taxpayer had                             
            income at least equal to the normal cost of living.  Giddio v.                               
            Commissioner, 54 T.C. 1530, 1533 (1970).                                                     
                  Prior to issuing notices of deficiency, respondent did not                             
            contact petitioners and did not obtain any evidence linking                                  
            petitioners to an income generating activity relating to 1993.                               
            Nevertheless, respondent proceeded to use BLS data to reconstruct                            
            petitioners' 1993 income.  Therefore, respondent's determinations                            
            relating to petitioners' 1993 tax years are arbitrary, and                                   
            respondent bears the burden of coming forward with evidence to                               
            establish the existence and amount of any deficiency.  Jackson v.                            
            Commissioner, supra at 401; cf. Giddio v. Commissioner, supra                                
            (holding that it is not arbitrary for the Commissioner to use BLS                            
            data to reconstruct a taxpayer's income when the Commissioner has                            
            evidence of taxable income).                                                                 
                  Respondent has failed to present sufficient evidence to                                
            establish the existence and amount of the deficiencies relating                              
            to 1993.  Although Mr. Cujas testified that he was self-employed                             
            as a physical therapist during 1993, respondent has failed to                                
            establish the amount of funds that Mr. Cujas may have received                               
            during 1993 for such services.  Therefore, respondent has failed                             





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