- 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 aPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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