Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 7

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          burden rests with petitioners to demonstrate that respondent's              
          determinations are erroneous.  Rule 142(a).                                 
               A rare exception to this rule is where the Commissioner, in            
          a case involving unreported income, introduces no evidence but              
          rests on the presumption of correctness and the taxpayer                    
          challenges the deficiency on the grounds that it is arbitrary.              
          Schad v. Commissioner, 87 T.C. 609, 618 (1986), affd. without               
          published opinion 827 F.2d 774 (11th Cir. 1987).  The                       
          Commissioner in these circumstances must show some minimal                  
          evidentiary foundation connecting the taxpayer to an income-                
          producing activity or to the funds.  Edwards v. Commissioner, 680           
          F.2d 1268, 1270 (9th Cir. 1982), affg. an Order of this Court;              
          Weimerskirch v. Commissioner, 596 F.2d 358, 361-362 (9th. Cir.              
          1979), revg. 67 T.C. 672 (1977).  Whether or not respondent has             
          substantiated her determination of unreported income with this              
          evidentiary foundation will be discussed as the issue is                    
          addressed for each petitioner.                                              
               Petitioners in these cases rely heavily on their own                   
          testimony.  We found some of petitioners' testimony to be                   
          general, vague, conclusory, and/or questionable in certain                  
          material respects.  Under the circumstances presented here, we              
          are not required to, and generally do not, rely on petitioners'             
          testimony to sustain their burden of establishing error in                  
          respondent's determinations.  See Lerch v. Commissioner, 877 F.2d           
          624, 631-632 (7th Cir. 1989), affg. T.C. Memo. 1987-295; Geiger             

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