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received a $1,000 cleaning deposit from the Barretts in that
year. The Dickersons received payments from the Barretts with
regard to the lease of the Green Ridge residence in the amount of
$850 each on August 20, 1990, September 20, 1990, and October 30,
1990. The Dickersons never lived at the Green Ridge residence.
The Dickersons presented no arguments why this amount should not
be included in income. We therefore consider this issue to be
abandoned and sustain respondent on this issue. See Lime Cola
Co. v. Commissioner, 22 T.C. 593, 606 (1954).
Unreported Income--General
Respondent, using a bank deposits and expenditures analysis,
determined that each of the petitioners had unreported income for
some of the years in issue.
The United States Court of Appeals for the Ninth Circuit, to
which an appeal of this case would lie, has held that in order
for the presumption of correctness to attach to the notice of
deficiency in unreported income cases, the Commissioner must come
forward with substantive evidence establishing “some evidentiary
foundation” linking the taxpayer to the income-producing
activity, Weimerskirch v. Commissioner, supra at 361-362, or
“demonstrating that the taxpayer received unreported income”,
Edwards v. Commissioner, 680 F.2d at 1270; see also Rapp v.
Commissioner, 774 F.2d 932, 935 (9th Cir. 1985), affg. an Order
of this Court. We must examine the record to determine whether
there is a minimal evidentiary foundation supporting respondent's
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