Robert T. Schirle - Page 18

                                       - 18 -                                         

                                       OPINION                                        
               Respondent based his determination of a deficiency in                  
          petitioner's 1988 Federal income tax entirely on five disputed              
          insurance checks.  After adjustments, the deficiencies for 1989,            
          1990, and 1991 are net amounts representing (1) one-third of the            
          gross receipts from the remainder of the 162 disputed insurance             
          checks, (2) respondent's reversal of petitioner's yearend ledger            
          adjustments, which petitioner claims identify amounts in his                
          client trust account which were not taxable receipts, and (3)               
          insurance settlement checks deposited into the Mitsui client                
          trust account in 1991 and a $3,000 cash deposit into that same              
          account in 1989.                                                            
          Unreported Income                                                           
               Respondent, on the basis of the 162 cashed checks made out             
          to petitioner's law firm, determined that petitioner had                    
          unreported income for each of the years in issue.                           
               The Commissioner's determinations are entitled to a                    
          presumption of correctness.  Rule 142(a); Welch v. Helvering, 290           
          U.S. 111 (1933).  The burden is upon the taxpayer to demonstrate            
          in the first instance that the Commissioner's determination is              
          arbitrary and unreasonable in order to deprive it of the                    
          presumption of correctness.  Harbin v. Commissioner, 40 T.C. 373,           
          376 (1963).                                                                 







Page:  Previous  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  Next

Last modified: May 25, 2011