Norwest Corporation and Subsidiaries, Successor in Interest to Davenport Bank and Trust Company and Subsidiaries - Page 5

                                        - 5 -                                         

          the total adjustment, petitioner contends in its second motion              
          that the burden of proof with respect to the $151,382 should                
          shift to respondent.                                                        
               A hearing was held on both motions.  At the hearing, neither           
          party presented any witnesses, and no documentary information was           
          submitted into evidence.  The hearing consisted solely of the               
          arguments of counsel.                                                       
               It is undisputed that, sometime after petitioner's 1991                
          return was filed, an engineer agent with the Internal Revenue               
          Service (IRS) issued to petitioner an information document                  
          request with respect to the $658,000 expenses referred to in the            
          disclosure statement, requesting an itemization of the expenses             
          comprising the $658,000 and documentation to support the claimed            
          expenses.  Petitioner replied with the following itemization:               

          Lane & Waterman--legal advice           $473,453                            
          Lane & Waterman--legal advice                565                            
          KPMG--comfort letter                      17,350                            
          KPMG--tax opinion                         15,250                            
          Unidentified                             151,382                            
          Total                                 $658,000                              

          No documentation was provided the IRS agent to support the                  
          $151,382 unidentified costs.                                                
               Petitioner contends that the $151,382, described in the                
          above itemization as "Unidentified" costs, was included by error            
          in the $658,000 of expenses referred to on the disclosure                   
          statement and that only $506,618 was incurred and claimed as a              




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011