- 6 - using the BLS data. See id. We find that respondent's recon- struction of petitioner's income using the BLS statistics was reasonable under these circumstances. Petitioner argues that respondent's determination is arbitrary and excessive, and therefore respondent has the burden of proving that he had taxable income. See Day v. Commissioner, 975 F.2d 534, 537 (8th Cir. 1992), affg. in part and revg. in part T.C. Memo. 1991-140. Petitioner bears the burden of proving that the determination is arbitrary and excessive. Id. While we agree with some of petitioner's statements of the law, we disagree with petitioner's conclusion as it applies to this case.2 In certain cases, courts will not sustain a deficiency determination unless there is some predicate evidence that the taxpayer received income from an activity. United States v. Janis, 428 U.S. 433, 441-442 (1976); Day v. Commissioner, supra at 537; Anastasato v. Commissioner, 794 F.2d 884, 887 (3d. Cir. 1986), vacating T.C. Memo. 1985-101. The evidentiary foundation 2Petitioner also argues that we lack subject matter juris- diction because the notice of deficiency was invalid. See Scar v. Commissioner, 814 F.2d 1363 (9th Cir. 1987), revg. 81 T.C. 855 (1983). In this case, the notice of deficiency explains respon- dent's determinations in detail, including the basis for, and computation of, the income determinations. We therefore reject this argument and conclude that the notice of deficiency is valid. See Campbell v. Commissioner, 90 T.C. 110 (1988).Page: Previous 1 2 3 4 5 6 7 8 Next
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