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delivered summonses or engaged in some other income-producing
activity in 1993. In the absence of any evidence that petitioner
was engaged in income-producing activity beyond his work for
Cantel Communications, respondent has not demonstrated any
factual predicate for the unreported income of $35,873 in 1993,
and accordingly the determination thereof is not presumptively
correct.
Having decided that the notices of deficiency, with one
exception, are presumptively correct, we turn now to an
evaluation of the evidence pertaining to the disputed amounts of
unreported income in each year. The deficiency notices state
that petitioner's unreported income was computed "using
reasonable estimates based on known sources of income". While
the notices make no reference to the Bureau of Labor Statistics
(BLS), respondent asserts on brief that petitioner's unreported
income in each year was reconstructed through the use of BLS
data. Respondent cites Giddio v. Commissioner, 54 T.C. 1530,
1533 (1970), where we approved the use of BLS statistics to
reconstruct income, for the proposition that it is not "arbitrary
for the Commissioner to determine that the taxpayer had income at
least equal to the normal cost of supporting his family." Based
on this reliance on Giddio, and in the absence of any further
explanation of the BLS computation, respondent's position appears
to be that BLS data were used in the deficiency notices to
establish petitioner's normal cost of living; i.e., that the
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