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Unreported interest income of $16,796 from J&J Trucking for 1993
and 1994, (2) unreported income of $17,300 related to a currency
transaction in 1993, (3) an unsubstantiated NOL carryforward of
$323,352 to 1994, (4) unreported rental activity income of
$55,939 in 1994, (5) net trust expenses of $14,000 allowed by
respondent to offset petitioner’s individual income tax liability
in 1994, and (6) computational adjustments related to personal
exemptions and taxation of Social Security benefits received in
1994.
OPINION
Procedural Matters
Before trial, petitioner filed a motion to dismiss the cases
at hand on the three following grounds: (1) The 1992 and
1993/1994 notices were “naked assessments”; (2) the written
acceptance of petitioner’s 1993 and 1994 tax returns after audit
(no change letter) was conclusive of all tax matters for those
years; and (3) petitioner was denied his due process rights under
the Sixth Amendment to the Constitution because he was not
allowed to confront representatives of United Ready Mixed at
trial. We denied petitioner’s motion for the reasons stated
below.
“Naked Assessment” Argument
In general, a deficiency notice is presumed correct and the
taxpayer has the burden of proving it wrong. Rule 142(a)(1);
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