- 8 - taxable period from records of income produced by the activity in question over some shorter period. See, e.g., United States v. Janis, 428 U.S. 433, 437 (1976) (upholding projection of 77 days’ income based upon 5 days’ gross proceeds as indicated in wagering records); United States v. Besase, 623 F.2d 463, 468 (6th Cir. 1980) (upholding reconstruction of income based on 4 days’ gross gambling receipts as indicated on adding machine tapes). Obviously, the reliability of the results obtained under this method depends upon the reliability of the starting point; i.e., the adequacy of the data used to extrapolate the projected income. Cf. Thomas v. Commissioner, 223 F.2d 83, 89 (6th Cir. 1955) (“‘To be dependable, however, the [net worth] method requires a starting point, reasonably well established as accurate.’” (quoting Gariepy v. United States, 189 F.2d 459, 461 (6th Cir. 1951))). In employing the projection method here, respondent used as his starting point petitioner’s alleged illegal receipts for the month of August 1988. To arrive at this starting point, respondent relied upon information derived from a notebook that the Akron Police Department allegedly seized from petitioner’s briefcase upon his arrest at 80 S. Portage Path, in Akron, Ohio. At trial, respondent sought to introduce into evidence certain photocopied pages (the photocopied pages) that respondent claimed to be a true copy of the notebook in question. Respondent was unablePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011