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Admin. Regs., 52 Fed. Reg. 3003 (Jan. 30, 1987), and, therefore,
that Primco is not excluded from the unified S corporation audit
and litigation procedures.
A reply to respondent's answer, filed on behalf of Primco,
includes allegations that, because revocable trusts are regarded
as a nullity for Federal income tax purposes, it is appropriate
to conclude that Primco's sole shareholders are the two
individual grantors of the trusts for purposes of determining
whether Primco is a small S corporation under the governing
regulation.2
By order dated October 3, 1996, Primco was directed to file
an amendment to petition identifying Primco's tax matters person,
as well as the name and address of the shareholder commencing the
case.3 Shortly thereafter, the Court received and filed an
amendment to petition, which indicates that Primco's tax matters
person (and the shareholder commencing the case) is Alfred D.
2 Although the reply filed on behalf of Primco includes
allegations that Primco was not owned by the trusts during the
years in issue, counsel for petitioner subsequently conceded at
the hearing of this matter that Primco was owned by the trusts
during the years in issue.
3 The pleadings filed in this case on behalf of Primco do
not comply with the controlling statutory provisions, which
generally require that a petition for readjustment be filed by
the tax matters person or a shareholder other than the tax
matters person. See secs. 6244 and 6226; Rule 240(c)(1)(B);
Gold-N-Travel, Inc. v. Commissioner, 93 T.C. 618 (1989).
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