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involving unreported income, to be entitled to a presumption of
correctness, the deficiency determination must be supported by
some predicate evidence that the determination is correct. Sealy
Power, Ltd. v. Commissioner, 46 F.3d 382, 386 (5th Cir. 1995),
affg. in part and revg. in part T.C. Memo. 1992-168; Portillo v.
Commissioner, 932 F.2d 1128, 1132 (5th Cir. 1991), affg. in part
and revg. in part T.C. Memo. 1990-68.
Petitioner provided no records to respondent. Respondent
may, in the absence of records, use a reasonable method to
reconstruct a taxpayer’s income. Holland v. United States, 348
U.S. 121, 131 (1954). Respondent estimated the amount of
petitioner’s return preparer fees to be $25 for 1992, $28 for
1993, and $26 for 1994 based on third party bank records attached
to two responses to respondent’s survey. Respondent multiplied
those estimates by the number of returns bearing petitioner’s
return preparer number for each year. Respondent estimated the
amount of RAL fees petitioner received by multiplying $30 by the
number of returns bearing petitioner’s return preparer number for
each year. Respondent added these estimates of petitioner’s
return preparer fees and RAL fees to estimate the amount of
petitioner’s gross receipts for 1992-94.
Respondent’s determination is amply supported by sufficient
predicate evidence. Thus, petitioner bears the burden of showing
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