- 13 - In this case, respondent has produced more than adequate substantive evidence linking petitioner to income from the sale of marijuana in 1983. This includes petitioner's criminal conviction arising from the Michigan transaction, petitioner's own testimony during the plea hearing in the criminal case, testimony of law enforcement officers, and detailed testimony of coconspirators. Indeed, petitioner stipulates that he was engaged in the sale of marijuana during 1983. Under the circumstances, we find that respondent has more than satisfied respondent's initial burden of producing some substantive evidence connecting petitioner with an income-producing activity, and we find that the burden of disproving respondent's determination of unreported income remains with petitioner. We also sustain respondent's calculation of the amount of petitioner's unreported income. Section 6001 requires all taxpayers to maintain sufficient records to determine their correct tax liability. See Petzoldt v. Commissioner, supra at 686. If a taxpayer fails to maintain or does not produce adequate books and records, the Commissioner is authorized by section 446 to reconstruct the taxpayer's income. See sec. 446(b); Petzoldt v. Commissioner, supraPage: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
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