William Henry Sundel - Page 12

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             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.                                                                     







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