- 15 -
492-493 (1968). However, if the new position requires the
taxpayer to present different evidence, it is new matter, and the
Commissioner bears the burden of proof. Achiro v. Commissioner,
77 T.C. 881, 890 (1981); Estate of Falese v. Commissioner, 58
T.C. 895, 899-900 (1972).
2. Notice of Deficiency
Petitioners deducted $727,600 for worthless Dondi Financial
stock in 1987 and $199,600 for worthless Texana Capital stock in
1988. In the notice of deficiency, respondent disallowed
$618,460 of petitioners' deduction for 1987 and all of their
deduction for 1988. Respondent determined that petitioners "did
not establish that the amount shown, i.e. $618,460 and $199,600
was (a) a loss, and (b) sustained by you". The notice of
deficiency also included the following calculation:
1987 1988
Purchase cost $727,600 Purchase cost $199,600
Less cash paid 109,140 Payments verified 0
Adjustment 618,460 Adjustment 199,600
3. Amendment to Answer
In the petition, petitioners contended that respondent erred
in disallowing the worthless stock deductions. In the answer,
respondent denied that respondent's determination was in error.
About 11 months later and 14 days before trial, respondent moved
to amend the answer and lodged an amended answer. We granted
respondent's motion.
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