- 13 - petitioner put into a safe deposit box in 1988. Furthermore, petitioner filed a claim for the money seized from the boxes at the California banks and for the Cadillac from which the $27,620 was seized. Finally, petitioner admits that he rented the boxes, and that he put the money into the boxes. Respondent has connected petitioner to the funds that form the basis of the deficiency; the notice of deficiency was not arbitrary. Delaney v. Commissioner, supra; Schad v. Commissioner, supra; Tokarski v. Commissioner, supra. Since respondent's deficiency notice was not arbitrary, petitioner has the burden of going forward with the evidence as well as the ultimate burden of persuasion. Dellacroce v. Commissioner, supra at 280. Every taxpayer is required to maintain adequate records of taxable income. Sec. 6001. Petitioner did not file a Federal income tax return or make any estimated Federal income tax payments for any of the years at issue. Nor did he maintain adequate records from which the amount of his income or Federal income tax liability for any of the years at issue could be computed. In the absence of such records, respondent may reconstruct the taxpayer's income by any reasonable method that clearly reflects income. Sec. 446(b); Holland v. United States, 348 U.S. 121, 130-132 (1954); Parks v. Commissioner, 94 T.C. 654, 658 (1990). Respondent used the specific items method of proof to determine petitioner's income for the taxable years at issue. This method requires proof of specific items of income that werePage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011