- 7 -
Palmer v. United States, 116 F.3d 1309, 1313 (9th Cir. 1997).
Once the Commissioner produces evidence linking the taxpayer to
an income-producing activity, the burden shifts to the taxpayer
to rebut the presumption by establishing that the Commissioner’s
determination is arbitrary or erroneous. Rapp v. Commissioner,
supra at 935; Adamson v. Commissioner, 745 F.2d 541, 547 (9th
Cir. 1984), affg. T.C. Memo. 1982-371; see also United States v.
Janis, 428 U.S. 433, 441-442 (1976).
This case is appealable, barring a stipulation to the
contrary, to the Court of Appeals for the Ninth Circuit.
Consequently, we are bound to apply the law of the circuit as
summarized above. Golsen v. Commissioner, 54 T.C. 742 (1970),
affd. 445 F.2d 985 (10th Cir. 1971).
The evidence on which respondent relies to satisfy his
initial burden of production regarding his determination that
petitioners received unreported income is drawn from Forms 1099
that respondent received from third-party payers. Because
petitioners have stipulated that they received the income
reported on the Forms 1099, respondent has met his burden of
production. See Parker v. Commissioner, 117 F.3d 785, 787 (5th
Cir. 1997) (when the taxpayer does not dispute the receipt of
unreported income, the Commissioner “has no duty to investigate a
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011