Nathaniel Caleb Avery - Page 10

                                        -10-                                          
          1997) (“The Commissioner’s deficiency determinations and                    
          assessments for unpaid taxes are normally entitled to a                     
          presumption of correctness so long as they are supported by a               
          minimal factual foundation.”).  If the Commissioner introduces              
          some evidence that the taxpayer received unreported income, the             
          burden shifts to the taxpayer to show by a preponderance of the             
          evidence that the deficiency was arbitrary or erroneous.  See               
          Hardy v. Commissioner, 181 F.3d 1002, 1004 (9th Cir. 1999), affg.           
          T.C. Memo. 1997-97.7                                                        
               We conclude that respondent has met his burden of production           
          as to the unreported income determined in the notice of                     
          deficiency.  Respondent introduced, and we admitted, into                   
          evidence respondent’s computer-generated form stating that                  
          respondent had received from Efeckta a Form W-2 reporting that it           
          had paid petitioner wages of $157,553 during 2002.  See id. at              
          1005 (the Commissioner satisfied the sufficient foundation                  
          requirement when the taxpayer’s employer reported the taxpayer’s            
          income to the Commissioner); Hughes v. United States, 953 F.2d              
          531, 540 (9th Cir. 1992) (upholding the use of official,                    


               7 Pursuant to sec. 7491(a), the burden of proof as to                  
          factual matters affecting liability for tax shifts to the                   
          Commissioner under certain circumstances.  Petitioner has neither           
          alleged that sec. 7491(a) applies nor established his compliance            
          with the requirements of sec. 7491(a)(2)(A) and (B) to                      
          substantiate items, maintain records, and cooperate fully with              
          respondent’s reasonable requests.  We conclude that sec. 7491(a)            
          is inapplicable to this case.                                               





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