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factual determination, the Commissioner is not obliged to concede
a case until the Commissioner receives the necessary documenta-
tion to prove the taxpayer’s contentions”, Corkrey v. Commis-
sioner, 115 T.C. at 375 n.5, and that “after the Commissioner
receives the proper documentation, a reasonable period of time
must be given to analyze the documents and make adjustments
accordingly”, id. On numerous occasions, the Court has found
that, in the absence of evidence undermining the reliability of
information returns provided to the Commissioner or otherwise
substantiating a taxpayer’s contentions, reliance by the Commis-
sioner on information returns is substantially justified. See,
e.g., id.
In the instant case, respondent relied on the EquiServe
Forms 1099-B in making the $21,267 gross proceeds determination.
At various times, respondent made requests to petitioners for
information about such gross proceeds. Petitioners did not
provide any information or explanation in response to those
requests. It was only after respondent requested information
from Computershare (formerly EquiServe) and Fannie Mae, and
received in December 2005 relevant information from Fannie Mae,
that respondent had any evidence showing that respondent’s
$21,267 gross proceeds determination was incorrect. On December
19, 2005, shortly after having received that information from
Fannie Mae, respondent conceded that determination. On the
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Last modified: November 10, 2007