Dennis R. Andrews - Page 5

                                        - 5 -                                          

          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                 







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011