- 26 -
retained all the after-tax proceeds of the sale. Staff of Joint
Comm. on Taxation, General Explanation of the Tax Reform Act of
1976, at 672 (J. Comm. Print 1976), 1976-3 C.B. (Vol. 2) at 684.
Thus, petitioner's donations do not present an opportunity for the
type of tax avoidance unintended by Congress.
For the foregoing reasons, we agree with petitioner that its
bakery product donations to food banks should be valued at full
retail prices, and we so hold.
At the trial, petitioner sought to have a letter stipulated into
evidence to which respondent raised a hearsay objection. See Fed.
R. Evid. 801(a). The letter was addressed to a revenue agent, and
was obtained by petitioner from respondent in the course of informal
discovery. Petitioner did not call the author of the letter as a
witness, nor did petitioner attempt to account for his
unavailability. The Court reserved judgment as to the admissibility
of the letter. After further consideration, the Court now rules
that respondent's objection is sustained. Informal discovery is
used, in part, to lead the discovering party to admissible evidence,
not to automatically validate it. Zaentz v. Commissioner, 73 T.C.
469, 471-472 (1979).
To reflect the foregoing, and to give effect to settled issues
and the issue remaining to be resolved,
An appropriate order will be
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011