- 11 - 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 toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011