Harper v. Commissioner
United States Tax Court
Held: (1) Respondent's use of the bank deposits-expenditures method of determining taxable income was not arbitrary and capricious. (2) Statements made by petitioner to revenue agents in noncustodial, noncoercive interviews should not be excluded as evidence because of the failure of the agents to advise her of her constitutional rights under the fifth and sixth amendments. Miranda v. Arizona, 384 U.S. 436, inapplicable.
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Held: (1) Respondent's use of the bank deposits-expenditures method of determining taxable income was not arbitrary and capricious. (2) Statements made by petitioner to revenue agents in noncustodial, noncoercive interviews should not be excluded as evidence because of the failure of the agents to advise her of her constitutional rights under the fifth and sixth amendments. Miranda v. Arizona, 384 U.S. 436, inapplicable. (3) Petitioners substantially understated their income and overstated their expenses in the years 1957 through 1960. (4) Petitioners are liable for the additions to tax for…
1Opinion of the Court
OPINION
I. Use of Banh-Deposits Method
Petitioners contend that respondent’s use of the bank deposits-expenditures method of reconstructing their taxable income was arbitrary and unreasonable, and thus shifts to respondent the burden of proving the correct amount of the deficiencies for the years in question. Helvering v. Taylor, 293 U.S. 507 (1935).
It is clear that petitioners’ records were incomplete and inadequate, - and that they kept no books of account. In the absence of adequate records, an examination conducted by respondent’s agents disclosed that petitioners had sources of income and…
2Cases cited146 opinions
- Miranda v. ArizonaSupreme Court of the United States · 1966
- Escobedo v. IllinoisSupreme Court of the United States · 1964
- Griffin v. CaliforniaSupreme Court of the United States · 1965
- Boyd v. United StatesSupreme Court of the United States · 1886
- Holland v. United StatesSupreme Court of the United States · 1955
141 more not listed; retrieve them via the Exa API.
3Cited by193 opinions
- Greenberg's Express, Inc. v. CommissionerUnited States Tax Court · 1974
- Estate of Mason v. CommissionerUnited States Tax Court · 1975
- Suarez v. CommissionerUnited States Tax Court · 1972
- Nicholas v. CommissionerUnited States Tax Court · 1978
- Riland v. CommissionerUnited States Tax Court · 1982
188 more not listed; retrieve them via the Exa API.