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receipts from sales of wheels and axles and, if so, whether Mr.
Coyle omitted commission income.
1. Regal
Respondent determined that Regal failed to report gross
receipts from sales of wheels and axles for the taxable years
ending March 31, 1992 and 1993, of $13,948 and $45,741,
respectively. Respondent allowed Regal corresponding deductions
for commission expenses paid to Mr. Coyle for the tax years
ending March 31, 1992 and 1993, of $13,948 and $45,741,
respectively.
Gross income means all income from whatever source derived.
Sec. 61. The Commissioner may use any reasonable means to
reconstruct a taxpayer’s income. Counts v. Commissioner, 774
F.2d 426, 428 (11th Cir. 1985), affg. T.C. Memo. 1984-561. When
the Commissioner determines that a taxpayer received unreported
income, the determination in the notice of deficiency must be
“supported by ‘some evidentiary foundation linking the taxpayer
to the alleged income-producing activity.’” Blohm v.
Commissioner, 994 F.2d 1542, 1549 (11th Cir. 1993) (quoting
Weimerskirch v. Commissioner, 596 F.2d 358, 362 (9th Cir. 1979),
revg. 67 T.C. 672 (1977)), affg. T.C. Memo. 1991-636. The
Commissioner need only provide a minimal showing that the
taxpayer failed to report income. Id. The taxpayer bears the
burden of proving that the notice of deficiency is arbitrary or
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