- 6 - 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 thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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