Jackson v. Commissioner
United States Tax Court
Respondent determined that petitioner received taxable income from drug trafficking activities, based solely upon information furnished by an unreliable informant. Petitioner's testimony lacked credibility and respondent offered no substantive evidence. Held, respondent may not rely upon the usual presumption of correctness attaching to the notice of deficiency because respondent's determination was shown to be arbitrary and excessive.
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Respondent determined that petitioner received taxable income from drug trafficking activities, based solely upon information furnished by an unreliable informant. Petitioner's testimony lacked credibility and respondent offered no substantive evidence. Held, respondent may not rely upon the usual presumption of correctness attaching to the notice of deficiency because respondent's determination was shown to be arbitrary and excessive. Weimerskirch v. Commissioner, 67 T.C. 672 (1977), revd. 596 F.2d 358 (9th Cir. 1979), distinguished.
1Opinion of the Court
Nims, Jvdge:
Respondent determined a deficiency in petitioner’s income tax for the calendar year 1970 of $94,080 and additions thereto under sections 6651(a),1 6653(a), and 6654(a) of $23,520, $4,704, and $3,011,2 respectively.
The only issues presented are whether petitioner received unreported profits of $153,475 from illegal activities in 1970 and whether he is liable for additions to tax.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts, together with the exhibits attached thereto, are incorporated herein by this reference.
Petitioner Leonard Jackson maintained…
2Cases cited22 opinions
- United States v. JanisSupreme Court of the United States · 1976
- Helvering v. TaylorSupreme Court of the United States · 1935
- Greenberg's Express, Inc. v. CommissionerUnited States Tax Court · 1974
- Johnny Weimerskirch v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1979
- Weimerskirch v. CommissionerUnited States Tax Court · 1977
17 more not listed; retrieve them via the Exa API.
3Cited by198 opinions
- Tokarski v. CommissionerUnited States Tax Court · 1986
- Petzoldt v. CommissionerUnited States Tax Court · 1989
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Raul Llorente v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1981
- Llorente v. CommissionerUnited States Tax Court · 1980
193 more not listed; retrieve them via the Exa API.