Elizabeth Lai - Page 12

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          used to purchase the cashier’s check, respondent determined that            
          the cash petitioner used to purchase the cashier’s check was                
          unreported income.                                                          
               Finally, respondent adjusted the amounts of petitioner’s               
          reported itemized deductions, personal exemptions, self-                    
          employment tax, and child tax credit in accordance with the above           
               Generally, the Commissioner’s determinations of deficiencies           
          in a notice of deficiency are presumed correct, and the taxpayer            
          bears the burden of showing that the Commissioner’s                         
          determinations are in error.  See Rule 142(a); Welch v.                     
          Helvering, 290 U.S. 111, 115 (1933).5  The U.S. Court of Appeals            
          for the Ninth Circuit (to which an appeal of this matter would              
          lie) has held that the Commissioner must establish “some                    
          evidentiary foundation” connecting the taxpayer with the income-            
          producing activity, Weimerskirch v. Commissioner, 596 F.2d 358,             
          361-362 (9th Cir. 1979), revg. 67 T.C. 672 (1977), or demonstrate           
          that the taxpayer actually received unreported income, see                  
          Edwards v. Commissioner, 680 F.2d 1268, 1270 (9th Cir. 1982) (the           

               5  Petitioner has neither claimed nor shown that she                   
          satisfied the requirements of sec. 7491(a) to shift the burden of           
          proof to respondent with regard to any factual issue affecting              
          her liability for the income tax deficiencies.  Accordingly,                
          petitioner bears the burden of proof.  See Rule 142(a).                     

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