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In determining petitioner's tax deficiencies, respondent utilized
the information as set forth above relating to the Forms W-2,
1099, and 1098, and certain Consumer Expenditure Surveys released
by the U.S. Department of Labor, Bureau of Labor Statistics.
OPINION
1. Burden of Proof
The threshold issue for decision concerns the placement of
the burden of proof. Petitioner argues that although
respondent's determinations contained in a notice of deficiency
are generally presumed to be correct, when respondent's
determinations are based upon an alleged underreporting of income
the presumption of correctness "evaporates", citing Zuhone v.
Commissioner, 883 F.2d 1317 (7th Cir. 1989), affg. T.C. Memo.
1988-142. Accordingly, petitioner contends, the burden of proof
in the instant case has shifted to respondent. Respondent
counters that the burden of proof remains with petitioner because
evidence linking petitioner to an income-producing activity has
been provided, and, in any event, that petitioner does not deny
receiving unreported income.
In general, the Commissioner's determinations contained in a
notice of deficiency are entitled to a presumption of
correctness, and the taxpayer has the burden of proving them
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