Court Opinion

ID: 9457368
Source: CourtListenerOpinion
Date Created: 2023-08-04 20:20:09.395031+00
Date Added: 2024-06-11T17:35:19.642976
License: Public Domain

ON PETITION FOR REHEARING
By petition for rehearing the government urges a single point — that we recede from the statement in footnote 2 that the Commissioner introduced no evidence to show that the taxpayer’s main business, The Investigators, was capable of generating substantial receipts in excess of those reported.
In the first place, it must be recognized that the situation under discussion was one in which the burden of proof was upon the government.
Second, the government’s argument is that the mere showing that a taxpayer engaged in an activity which was the source of any income is, without regard *977to the nature or scope of the activity or the size of the income, sufficient to establish that activity as a "likely source” of unreported income. We do not consider it to be appropriate for us to attempt to catalog the varying circumstantial evidence from which in varying situations an inference of “likelihood” may be drawn. But we do not in this case accept the proposition that “likely source” of unreported income is “any source of any income.”
The petition for rehearing is denied.