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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. Id. Once the Court determines
that the Commissioner provided the minimal evidentiary showing,
the taxpayer then bears the burden of proving that the notice of
deficiency is arbitrary or erroneous. Gatlin v. Commissioner,
754 F.2d 921, 923 (11th Cir. 1985) (citing Jackson v.
Commissioner, 73 T.C. 394, 401 (1979)), affg. T.C. Memo. 1982-
489.
Section 7491, enacted as part of the Internal Revenue
Service Restructuring and Reform Act of 1998, Pub. L. 105-206,
sec. 3001, 112 Stat. 726, which can shift the burden of proof
from the taxpayer to the Commissioner, is not applicable to this
case because petitioners’ audit commenced in April 1998, which
predates July 22, 1998, the effective date of section 7491.
Petitioners had two main sources of income, Mr. Possas’s
wages for his position as a manager and Mrs. Possas’s
hairdressing activity. Because petitioners kept no records as to
their income or expenses from the hairdressing activity, they
estimated these amounts on their returns. We find that
respondent has provided the required evidentiary foundation
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