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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. In
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