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record of a regularly conducted business activity must be
accompanied by a declaration certifying that the record (1) was
made at or near the time of the occurrence of the matters set
forth by, or from information transmitted by, a person with
knowledge of those matters; (2) was kept in the course of the
regularly conducted activity; and (3) was made by the regularly
conducted activity as a regular practice. All of the underlying
documents were kept in the regular course of business, and the
declarations of the validity of these documents were made by
people familiar with them.
We conclude that section 6201(d) does not apply in this
case.
b. Determination in Unreported Income Cases
The U.S. Court of Appeals for the Ninth Circuit (to which an
appeal of this case would lie) has held that in order for the
presumption of correctness to attach to the notice of deficiency
in unreported income cases, the Commissioner must establish “some
evidentiary foundation” linking the taxpayer to the
income-producing activity, Weimerskirch v. Commissioner, 596 F.2d
358, 361-362 (9th Cir. 1979), revg. 67 T.C. 672 (1977), or some
substantive evidence “demonstrating that the taxpayer received
unreported income”, Edwards v. Commissioner, 680 F.2d 1268, 1270
(9th Cir. 1982); see also Rapp v. Commissioner, 774 F.2d 932, 935
(9th Cir. 1985). Once there is evidence of actual receipt of
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