Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 6

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               21.  if any underpayment of tax exists, whether such                   
          underpayment by the Michoff, Jrs., for the 1990 tax year is due             
          to negligence or disregard of rules or regulations.                         
                    Some of the facts have been stipulated and are so                 
          found.  The stipulation of facts and attached exhibits are                  
          incorporated herein by this reference.                                      
               All petitioners in these consolidated cases resided in                 
          California at the time they filed their respective petitions.               
          These consolidated cases involve three generations of the same              
          family.  For convenience, we combine our findings of fact with              
          our opinion under each separate issue heading.                              
          Burden of Production                                                        
               Petitioners argue that the notices of deficiency are                   
          arbitrary and excessive on their face, and, therefore, the burden           
          of production should shift to respondent.  We disagree.                     
          Respondent's determinations are entitled to a presumption of                
          correctness.  Rule 142(a); Welch v. Helvering, 290 U.S. 111                 
          (1933).  The burden is upon petitioners to demonstrate in the               
          first instance that the determination is arbitrary and                      
          unreasonable in order to deprive it of the presumption of                   
          correctness.  Harbin v. Commissioner, 40 T.C. 373, 376 (1963).              
          Petitioners have failed to so demonstrate.  Respondent has                  
          provided sufficient evidence to convince this Court that the                
          notices of deficiency were neither arbitrary nor unreasonable.              
          Therefore, unless otherwise indicated, for all of the issues the            

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