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States, 348 U.S. 121 (1954). The reconstruction of income must
be reasonable in light of all of the surrounding facts and
circumstances. Giddio v. Commissioner, 54 T.C. 1530, 1533
(1970).
For the taxable years 1989 through 1992, we find that
petitioner was not engaged in any income-producing activity.
Respondent’s reliance upon an answer to an interrogatory filed in
a lawsuit (see supra note 4) is misplaced. While petitioner may
have identified himself in the answer to an interrogatory as a
tax management consultant, calling oneself that does not
necessarily indicate that he had in fact engaged in such
activity. We also note that the actual interrogatory that
petitioner answered was not presented to the Court, and thus we
are unaware of the full context of petitioner’s answer.
On the other hand, petitioner has satisfactorily established
that he was not engaged in income-producing activity during 1989
through 1992. We find that during that time petitioner was
recovering from serious gunshot wounds, attending university,
and/or pursuing his legal remedies. Petitioner received
nontaxable income from various agencies of the State of
California which he used to support himself.5 Accordingly, for
5 Respondent does not contest the nontaxability of those
proceeds.
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