- 3 - 2001, Order to Compel Responses to Interrogatories and Documents, and have made no meaningful attempt to participate in administrative proceedings, or the discovery process. At trial, respondent requested that the Court impose a penalty pursuant to section 6673. Despite several warnings by this Court, Mr. Combs persistently asserted why he believes taxes are unconstitutional. OPINION At the outset, we note that petitioners failed to cooperate with respondent and as a result, pursuant to section 7491, have the burden of proof. Petitioners’ primary contention is that respondent’s determinations are not entitled to a presumption of correctness. We disagree. Respondent’s determinations were supported by substantive evidence that the taxpayer received unreported income. See Rapp v. Commissioner, 774 F.2d 932, 935 (9th Cir. 1985)(holding that once the Government introduces evidence linking the taxpayer with income producing activity, the burden shifts to the taxpayer to establish that the deficiency determination is arbitrary or erroneous); Weimerskirch v. Commissioner, 596 F.2d 358, 360-361 (9th Cir. 1979), revg. 67 T.C. 672 (1977); Petzoldt v. Commissioner, 92 T.C. 661, 687-690 (1989)(discussing Court of Appeals for the Ninth Circuit authorities). Petitioners had unfettered control of trust property. Petitioners had signatory authority over, and drew checks on, trust bank accounts. InPage: Previous 1 2 3 4 5 Next
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