Simpson Financial Services, Inc. - Page 12

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          issuance of the notices of deficiency approximately 1-1/2 years             
          later.  Petitioners state that respondent unjustly denied them              
          the opportunity to seek an administrative appeal by not issuing a           
          second 30-day letter after issuing the revised examination                  
          report.  Petitioners charge that there existed a pattern of                 
          harassment against petitioners by respondent's agents, which                
          unreasonably increased the asserted deficiencies and made                   
          petitioners' substantiation efforts unduly difficult.                       
               We are not persuaded by petitioners' arguments.  Based on              
          our review of the record before us, we find nothing to support              
          petitioners' claims of overreaching and abusive tactics by                  
          respondent's agents.  To the contrary, our review of the record             
          indicates that respondent expeditiously conceded several issues             
          when petitioners provided convincing evidence concerning the                
          matters in dispute.  Although petitioners attempt in their motion           
          to articulate the abuse and overreaching of respondent's agents,            
          such statements are not proof.  Rule 143(b); See Niedringhaus v.            
          Commissioner, 99 T.C. 202, 214 n.7 (1992); Viehweg v.                       
          Commissioner, 90 T.C. 1248, 1255 (1988); Evans v. Commissioner,             
          48 T.C. 704, 709 (1967), affd. 413 F.2d 1047 (9th Cir. 1969).               
               We hold that respondent's positions had a reasonable basis             
          in law and fact.  Accordingly, petitioners are not entitled to              
          administrative and litigation costs under section 7430.                     
               To reflect the foregoing,                                              






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