- 14 - of the taxpayers’ income for those years. Id. The Commissioner’s reconstruction was based on certain average income statistics and the inference that, since the taxpayers were able to survive from the end of year 1 to year 4, they must have had some income during the intervening 2 years. Id. The taxpayers did not suggest that they had alternative means of support in the absence of income for the years in question, and the court found the Commissioner’s inference to be reasonable. Id. The taxpayers argued, however, that, under the Weimerskirch line of cases, the Commissioner was compelled to discover the exact source of the income that he would attribute to them. Id. The Court of Appeals disagreed, stating that, when the reasonable inference made by the Commissioner was coupled with the information linking the taxpayer-husband to wages for at least a part of the 4-year period, the minimal evidentiary foundation necessary to support the presumption of correctness had been established. Id. Finally, in Edwards v. Commissioner, 680 F.2d 1268 (9th Cir. 1982), the Court of Appeals upheld the presumption of correctness even though no specific income was documented, because the taxpayers there had conceded that they owned an income-generating auto repair business during the years at issue.Page: 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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