T.C. Memo. 1997-505
UNITED STATES TAX COURT
RICHARD L. BENNETT, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 19775-96. Filed November 10, 1997.
P contributed 236 films to a charitable
organization. In accord with an appraisal, P placed a
$236,000 value on the films. R, in the process of
examining P's contributions, had X, an in-house
engineer, to value the films. X opined that the films
had no (zero) value. R then hired Y, an outside
"independent" expert, to value the films. Finally, R
had Z, another in-house engineer, to value the films.
Z opined that 118 of the 236 films were damaged and
were of no value. Z also opined that P had correctly
valued at $1,000 per film those of the films that were
not damaged. R's notice of deficiency to P was based
on Z's valuation. P obtained the valuation reports
(reports) of the in-house engineers (X and Z), but Y's
report was not provided to P.
In the context of pretrial discovery P sought a
copy of Y's report. R refused to turn over the report
on the grounds that P was seeking to go behind the
notice of deficiency, citing Greenberg's Express, Inc.
v. Commissioner, 62 T.C. 324 (1974). P did not raise
in any pleading or motion the issue of whether the
notice of deficiency was arbitrary or capricious. R,
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