Kenneth Siebert - Page 12

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          has provided predicate evidence, corroborated by petitioner's own           
          testimony, to demonstrate that petitioner received taxable income           
          in 1988 and 1989 from his consulting practice.  Accordingly, the            
          presumption of correctness applies to respondent's CPI                      
          calculations with respect to these years, and petitioner bears              
          the burden of proving them erroneous.                                       
               Petitioner has failed to provide any credible evidence to              
          carry his burden of proof with respect to these years.                      
          Consequently, we hold that petitioner is liable for the 1988 and            
          1989 deficiencies attributable to respondent's CPI calculations.            
               Respondent has failed to provide predicate evidence,                   
          however, to establish that petitioner received income from his              
          tax consulting practice, Executive Couriers, or Computers & Stuff           
          during 1990, 1991, and 1992.  Therefore, respondent's                       
          determinations relating to these years are arbitrary, and she               
          bears the burden of proof.  See, e.g., Senter v. Commissioner,              
          T.C. Memo. 1995-311 (concluding that the Commissioner failed to             
          provide predicate evidence to support her deficiency                        
          determinations based on CPI calculations).  Respondent failed to            
          present sufficient evidence that petitioner received income in              
          these years.  Accordingly, we conclude that petitioner is not               
          liable for the alleged deficiencies relating to unreported income           
          in 1990, 1991, and 1992.                                                    

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