Big Hong Ng - Page 7

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          in the asserted deficiencies and additions to tax made in the               
          amended answer.  Ms. Ng bears the burden of proof with respect to           
          the deficiencies and additions to tax determined by respondent in           
          the notice of deficiency.  Rule 142(a).                                     
               Ms. Ng claims that respondent's deficiency determination was           
          arbitrarily derived, and as a result, the  presumption  of                  
          correctness generally attributed to the notice of deficiency should         
          disappear.  In this regard, the United States Court of Appeals for          
          the Ninth Circuit (where an appeal in Ms. Ng's 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, Weimerskrirch v. Commissioner, 596           
          F.2d 358, 361-362 (9th Cir. 1979), revg. 67 T.C. 672 (1977), or             
          "demonstrating that the taxpayer received unreported income."               
          Edwards v. Commissioner, 680 F.2d 1268, 1270 (9th Cir. 1982), affg.         
          an Order of this Court; see also Rapp v. Commissioner, 774 F.2d             
          932, 935 (9th Cir. 1985), affg. an Order of this Court.  We                 
          therefore must examine the record to determine whether there is a           
          minimal evidentiary foundation supporting respondent's                      
          determination of unreported income.                                         
               In the instant case, we find the record contains substantive           
          evidence to support respondent's determination of unreported                
          income.  See Blohm v. Commissioner, 994 F.2d 1542, 1549 (11th Cir.          




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