Alondra Industries, Limited, d.b.a. Accent Insulation Company and Subsidiaries, et al. - Page 25

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          the statutory notices.  Corporate petitioners have always seen              
          the substantiation issue as concerning substantiation of payment.           
          At trial, documents were stipulated that substantiate the                   
          challenged management payments.  Indeed, respondent, except for             
          some small matters of detail, essentially failed at trial to                
          dispute the substantiation issue.  However, respondent on brief             
          not only continues to deny that the payments to Pertinax for                
          management services and to Mr. Munro for rent have been                     
          substantiated, but now argues that Alondra and Edco were required           
          to and failed to substantiate their total deductions for wages              
          and management services.                                                    
               Insofar as the issue is substantiation of payment, corporate           
          petitioners' motion is moot.  Respondent's belated demand for               
          substantiation of Alondra's total deductions for wages is                   
          unacceptable.  In the period in question, Alondra had between 175           
          and 200 employees.12  Before briefing, respondent had challenged            
          only payments to Pertinax and Mr. Munro.  There was no reason for           
          Alondra to anticipate that it would have to substantiate wages              
          paid to its own employees.  Inasmuch as this matter was not even            
          argued until briefing, we consider it not to be before the Court.           
          Generally, we will not consider issues that are raised for the              
          first time at trial or on brief.  Foil v. Commissioner, 92 T.C.             


          12We do not discuss here Edco's three employees, because                    
          respondent's notice disallowed all of Edco's $35,671 deduction              
          for wages and salaries.                                                     




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