- 12 - the presumption of correctness, unless there is some reasonable foundation for the determination. E.g., Erickson v. Commissioner, 937 F.2d 1548, 1551 (10th Cir. 1991), affg. T.C. Memo. 1989-552; Rapp v. Commissioner, supra at 935; Llorente v. Commissioner, supra at 156; Weimerskirch v. Commissioner, supra at 360-361. The reasonable foundation may consist of evidence linking the taxpayer with an income-producing activity such that it can be inferred that the taxpayer received income from the activity, see, e.g., Weimerskirch v. Commissioner, supra at 360, or it may consist of evidence showing an ownership interest in assets possessed by the taxpayer, see, e.g., Erickson v. Commissioner, supra at 1551-1552. Once the Commissioner has demonstrated sufficient minimal facts to link the taxpayer with an income-producing activity or to show an ownership interest in assets possessed by the taxpayer, the presumption of correctness arises, and the taxpayer has the burden to rebut the presumption by establishing by a preponderance of the evidence that any deficiency determination is arbitrary or erroneous. See Erickson v. Commissioner, supra at 1551-1552; Rapp v. Commissioner, supra; Petzoldt v. Commissioner, supra at 689.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
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