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employment for the year. Petitioner admitted in his amended
petition that he had an IRA in 1994. Petitioner stated in
correspondence to respondent that if he were required to file a
Federal income tax return for 1995 and 1996, he would file as
head of household with four dependents. In his amended petition,
petitioner alleges that for 1995 and 1996, he had expenses for
the maintenance of his home and care of his wife and 2 children.
In an August 1998 motion sent to respondent, petitioner admitted
that he currently "works full time".
Petitioner failed to file returns for 2 of the 3 years in
this case and refused to cooperate in the ascertainment of his
income for all 3 years. From the evidence in the record, we find
that petitioner was employed in 1994, owned an IRA in 1994,
supported a household for himself, his wife, and children in
1994, 1995, and 1996, and worked full time in 1998. Respondent
has established in this case a minimal factual predicate for the
determinations.
Where there is evidence of taxable income but no evidence as
to the amount of such income, it is not arbitrary for respondent
to determine that the taxpayer had income at least equal to the
normal cost of supporting his family. See Giddio v.
Commissioner, 54 T.C. 1530, 1533 (1970); Andrews v. Commissioner,
T.C. Memo. 1998-316. "Otherwise 'skillful concealment' would be
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