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In such circumstances, the Courts have found the use of
statistical information appropriate.9 See, e.g, Pollard v.
Commissioner, 786 F.2d 1063, 1066 (11th Cir. 1986)(approving the
Commissioner’s income determination based on a Bureau of Labor
Statistics report that indicated the cost of living in a
particular geographical area), affg. T.C. Memo. 1984-536; Edwards
v. Commissioner, 680 F.2d 1268, 1270-1271 (9th Cir.
1982)(approving the Commissioner’s use of the Consumer Price
Index to determine income for the years in issue based on income
reported on the taxpayer’s earlier year’s tax return), affg. an
unreported order of this Court; Giddio v. Commissioner, 54 T.C.
at 1532-1533 (approving the Commissioner’s income determination
based on a Bureau of Labor Statistics report that indicated the
cost of living in a particular geographic area); see also
Barragan v. Commissioner, T.C. Memo. 1993-92 (approving the
Commissioner’s reconstruction of the taxpayer’s gasoline station
gross receipts based on Lundberg Survey’s semimonthly listing of
9Sec. 7491(b), relating to burden of proof with respect to
income reconstruction “solely through the use of statistical
information on unrelated taxpayers”, as enacted by sec. 3001 of
the Internal Revenue Service Restructuring and Reform Act of 1998
(1998 Act), Pub. L. 105-206, 112 Stat. 685, 726-727, does not
apply to the instant case for two reasons, as follows: (1)
Petitioner is a corporation and the provision applies only to
individual taxpayers, and (2) the examination in the instant case
began before July 22, 1998, the effective date of sec. 7491(b)
applicable to court proceedings in which there has been an
examination. See the 1998 Act, sec. 3001(c)(1), 112 Stat. at
727.
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