- 4 - On October 13, 1993, a week before trial, petitioner filed his pretrial brief in which, for the first time, petitioner argued that the entire $20,075 reported as taxable income on his 1988 return had been mistakenly reflected as such by Dragna, who had prepared petitioner’s 1988 return, and that the $20,075 in reported taxable income actually represented nontaxable loan proceeds. Trial of petitioner’s case was continued until January of 1994 to allow petitioner time to corroborate further his new claim as to the nontaxable nature of the $20,075. In late December of 1993, respondent received from petitioner documents that satisfied respondent’s representative as to the nontaxable nature of the $20,075, and in January of 1994 petitioner’s case was settled on that basis. Petitioner never established the deductibility of the $17,862 claimed farming loss, and the settlement that was entered into did not reflect any deduction with regard thereto. Pursuant to the settlement, we entered a decision reflecting no deficiency in income tax due from petitioner for 1988 and reflecting no additions to tax. When petitioner filed the instant motion for an award of administrative and litigation costs, we vacated our decision pending the outcome of petitioner’s motion for administrative and litigation costs. Petitioner did not attach to his motion an affidavit, as required by Rule 231(b)(5), supporting his claim that he satisfied the net worth requirement of section 7430(c)(4)(A)(iii). Moreover,Page: Previous 1 2 3 4 5 6 7 Next
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