- 9 - Respondent disallowed the claimed business expenses for 1989 and 1990 as a result of petitioner's failure to substantiate the expenditures and/or their business purpose. At trial, we held that expenses respondent had found unsubstantiated were, in large part, not allowable, reflecting the reasonableness of respondent's position at least as to the inadequately documented expenses. Respondent conceded some deductions and admitted that petitioner had substantiated some of the expenditures that had been in controversy, although she maintained that such expenditures lacked a business purpose. The Court substantially sustained petitioner as to many of these expenses. Although respondent has conceded that petitioner has not unreasonably protracted the proceedings, we note that petitioner repeatedly failed to respond adequately to respondent's requests for records and documents, and refused to permit respondent the opportunity to meet with Frances Byrne, petitioner's president, to explore further the nature of its business and the purpose of the corporation's expenditures. Moreover, correspondence between the parties' counsel reveals that records introduced at trial were not continually available to respondent's counsel and some were produced as late as November 1994, one year after the petitionPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011