Laurel Ann Curtis - Page 3




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               Memo. 1982-34.  * * *   Under Weimerskirch v.                          
               Commissioner, 596 F.2d 358 (9th Cir. 1979), revg. 67                   
               T.C. 672 (1977), to which we defer in accordance with                  
               the doctrine of Golsen v. Commissioner, 54 T.C. 742                    
               (1970), affd. 445 F.2d 985 (10th Cir. 1971), we must                   
               examine the record to determine whether there is a                     
               minimal evidentiary foundation supporting respondent’s                 
               determination of unreported income.  If there is not,                  
               respondent’s determination will be deemed arbitrary                    
               and, consequently, she will lose her presumption of                    
               correctness and will be forced to go forward with the                  
               evidence.  Weimerskirch v. Commissioner, supra.  The                   
               record, however, does contain evidence supporting                      
               respondent’s determination of unreported income, and,                  
               therefore, the burden of proof remains entirely with                   
               petitioner.                                                            
          Commissioner v. Curtis, supra (fn. ref. omitted).  The Court of             
          Appeals remanded for us to elaborate on the evidence supporting             
          respondent’s determination of unreported income.  We shall make             
          certain findings of fact and then discuss our basis for                     
          concluding that the record does contain evidence supporting                 
          respondent’s determination of unreported income.                            
               Unless otherwise noted, all section references are to the              
          Internal Revenue Code in effect for the years in issue, and all             
          Rule references are to the Tax Court Rules of Practice and                  
          Procedure.                                                                  
                                  FINDINGS OF FACT                                    
          Petitioner’s Acquisition of Rental Properties                               
               In 1970, petitioner began to acquire real estate.  In                  
          petitioner’s posttrial memorandum (the posttrial memorandum), she           
          states:  “By 1970 I had enough to make the down payment on a                







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