- 4 -
produce any credible evidence with respect to any matter in this
case. See sec. 7491(a). Furthermore, petitioner did not claim
that section 7491(a) applies. Accordingly, section 7491(a) does
not apply in this case.
Section 6201(d) provides that if a taxpayer asserts a
reasonable dispute with respect to any item of income reported on
an information return filed with the Secretary by a third party
and the taxpayer has fully cooperated with the Secretary, the
Secretary shall have the burden of producing reasonable and
probative information concerning such deficiency in addition to
such information return. As noted supra, petitioner failed to
cooperate with respondent. Accordingly, section 6201(d) does not
apply in this case.
Additionally, the U.S. Court of Appeals for the Ninth
Circuit (to which an appeal would normally lie) has held that in
order for the presumption of correctness to attach to the notice
of deficiency in unreported income cases,2 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
2 Although Weimerskirch v. Commissioner, 596 F.2d 358 (9th
Cir. 1979), revg. 67 T.C. 672 (1977), was an unreported income
case regarding illegal source income, the U.S. Court of Appeals
for the Ninth Circuit applies the Weimerskirch rule in all cases
involving the receipt of unreported income. See Edwards v.
Commissioner, 680 F.2d 1268, 1270-1271 (9th Cir. 1982); Petzoldt
v. Commissioner, 92 T.C. 661, 689 (1989).
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011