-9-
“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admissions withdrawn with respect to any of the years at issue,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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