- 3 -
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
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011