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jurisdiction. See Suarez v. Commissioner, 58 T.C. 792, 814
(1972).
The Court of Appeals for the Ninth Circuit, to which an
appeal of the case at hand would lie, has developed an exception
to this rule. In Scar v. Commissioner, 814 F.2d 1363 (9th Cir.
1987), revg. 81 T.C. 855 (1983), the Court of Appeals held a
notice invalid and dismissed the action for lack of jurisdiction
in favor of the taxpayer.
The notice in Scar informed the taxpayers that they had
$138,000 of unreported income from a tax shelter partnership
known as the “Nevada Mining Project”. The notice also stated
that tax was being assessed on this income at the maximum
marginal rate because the taxpayers’ original return was
unavailable. At trial, however, the taxpayers established that
they had no connection with the Nevada Mining Project, and that
they had in fact filed their tax return. As a result, the Court
of Appeals concluded that “the taxpayers proved that a
determination of their deficiency had not been made”. See Scar
v. Commissioner, supra at 1367 n.6.
Petitioner has made no such showing in the case at hand.
The notice sent to petitioner stated that he had $104,786 in
unreported business receipts during 1993. Petitioner has
stipulated that an identical amount was deposited in the
Universal bank account during 1993. Petitioner has also
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