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royalty income to petitioner in the aggregate amount of $7,137.
At first, Burns testified that the notice of deficiency
determinations as to royalty income for 1984, 1985, and 1986 came
from the IRP documents for those years. The Form 1099
information on the IRP documents for 1984 and 1986 matches, in
both detail and aggregate, respondent's determinations in the
notice of deficiency. Later, Burns testified as follows:
[THE COURT:] Now, Mr. Burns, with regard to Exhibit J
there seems to similarly be a summary at the end of that
exhibit.
THE WITNESS: Yes, sir.
THE COURT: There I see rents/royalties 7,137, but in
Exhibit 0 I see 1985 rents/royalties 23,954; and indeed, the
amount shown on the tax return was far in excess of the
7,137. Do you have any explanation of how that might be?
THE WITNESS: I believe we have copies in the files of
the 1099s for that period of time. I don't know if they are
in the exhibits. I am not that familiar with the exhibits
but I believe that we identified all of the 1099s which Mr.
Hall had on his return but we had, in addition, the $2,313
from this IRP document. Well, the additional items were
from that.
THE COURT: I don't understand. I thought that Exhibit
J, the IRP document, was showing all of the 1099s and
appropriate other forms.
THE WITNESS: Your Honor, I believe I said that in
error. I am positive that we have copies of 1099s in our
documentation that verify what Mr. Hall had shown on his
return, but in addition, we had the IRP items which are
shown on this. I did mis-speak.
THE COURT: Well, why would the IRP be missing so many
1099s?
THE WITNESS: I can't answer that, sir; I don't know.
Respondent's counsel did not (1) produce the other Forms
1099, (2) try to explain why respondent's 1985 IRP (in contrast
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