United States v. David Elmore

MEMORANDUM

David L. Elmore appeals a summary judgment in favor of the Internal Revenue Service (“IRS”) confirming tax assessments imposed for the tax years 1987 to 1993 and ordering the sale of real property owned by Elmore to satisfy the judgment. We have jurisdiction under 28 U.S.C. § 1291 , and affirm.

1. The IRS assessed unpaid taxes against Elmore under 26 U.S.C. §§ 6201-6203 , 6213, for three categories of taxable income. The IRS provided the “minimal factual foundation” needed for the “presumption of correctness” to attach to all the assessments. Palmer v. IRS, 116 F.3d 1309 , 1312 (9th Cir.1997). The burden then shifted to Elmore to show by a preponderance of the evidence that the IRS determinations were “arbitrary, excessive or without foundation.” Id. (citing Helvering v. Taylor, 293 U.S. 507, 515-16 , 55 S.Ct. 287 , 79 L.Ed. 623 (1935)). He did not do so.

a. Rental income from 1987 to 1992. The IRS had obtained a quitclaim deed from Elmore’s wife to Elmore and a statement from the owner of record that El-more was actually the one “improving the property.” An IRS revenue agent obtained a statement establishing that the tenants made regular payments to Elmore. This…