Raymond E. Vogt, Jr. - Page 9



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          “some evidentiary foundation” connecting the taxpayer with the              
          income-producing activity, or otherwise demonstrate that the                
          taxpayer received unreported income, for the presumption of                 
          correctness to attach to the deficiency determination in                    
          unreported income cases.  Weimerskirch v. Commissioner, 596 F.2d            
          358, 361-362 (9th Cir. 1979), revg. 67 T.C. 672 (1977).  If the             
          Commissioner introduces such evidence demonstrating 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.                                                              
               2000                                                                   
               It was deemed admitted under Rule 37(c) that petitioner                
          received but did not report a taxable partnership distribution              
          for the year 2000.  Petitioner did not move to have the deemed              
          admissions withdrawn with respect to any of the years at issue,             
          nor did he present any evidence that would tend to refute those             
          admissions.  We therefore hold that petitioner received                     
          unreported income in the above amount.                                      
               2001                                                                   
               It was deemed admitted under Rule 37(c) that petitioner                
          received a taxable partnership distribution for the year 2001.              
          Respondent’s bank deposits analysis for 2001 showed petitioner              







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