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Petitioner would not be entitled to any worthless stock
deductions for Dondi Financial in 1987 unless it became worthless
in 1987. We can only conclude that respondent was not
challenging petitioners' claim that the Dondi Financial stock
became worthless in 1987. In the amended answer, respondent
contends that the Dondi Financial stock became worthless no later
than August 1, 1985. Petitioners would be required to present
different evidence to contest this allegation than they would
have been required to present to contest the notice of
deficiency. Thus, respondent's contention in the answer is
new matter upon which respondent bears the burden of proof.
Respondent contends that the amended answer corrected a
mathematical computation in the notice of deficiency. We
disagree. Respondent has not identified a mathematical error
in the notice of deficiency.
Respondent contends that petitioners bear the burden of
proof because they are not prejudiced if they are required to
prove the year their Dondi Financial stock became worthless.
Respondent contends that petitioners are not prejudiced because
they amended their petition after respondent amended the answer
to claim that, if their Dondi Financial stock did not become
worthless in 1987, then it became worthless in 1985 or 1986.
We disagree. First, Rule 142(a) provides that the burden of
proof on new matter is on the Commissioner; Rule 142(a) does not
limit this to cases where the taxpayer would be prejudiced by
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