Omnitec Corporation, An Administratively Dissolved Corporation, Leland V. Lammert, President - Page 11

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         Michalowski v. Commissioner, T.C. Memo. 1976-192 (and cases cited            
         therein).  Under section 7491(a), the burden of proof does not               
         shift to petitioner.  See supra note 2.  Moreover, in Tokarski v.            
         Commissioner, 87 T.C. 74 (1986), this Court held that, where a               
         taxpayer is in receipt of bank deposits, respondent does not have            
         the burden of going forward with evidence linking the taxpayer to            
         an income-producing activity as a precondition to requiring the              
         taxpayer to satisfy his burden of proof.  Thus, the burden of                
         showing error in the bank deposits analysis is on the taxpayer.              
              Respondent’s agent made an exhaustive review of bank records            
         to arrive at a determination of petitioner’s income.  The audit              
         included contacts with numerous businesses that had utilized the             
         services of Omnitec.  None of these businesses had any reason to             
         believe that the services provided to them were other than the               
         services of Omnitec Missouri.  Respondent’s use of this indirect             
         method of income determination was warranted in light of the                 
         refusal of Mr. Lammert, an officer of Omnitec Missouri, to                   
         cooperate in the audit by providing books and records to show the            
         income and expenses of Omnitec Missouri or to show that the                  
         activity conducted under the names of Omnitec Corp. and Omnitec,             
         Inc., was an activity of Omnitec Nevada.  The agent concluded                
         that the activity was an activity of Omnitec Missouri and                    
         calculated the income and allowable expenses leading to the                  
         determination of the deficiencies.  No evidence was presented to             






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