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To justify an accumulation of earnings and profits, a
taxpayer must (1) indicate that the future needs of the business
require such accumulation, and (2) have specific, definite, and
feasible plans for the use of such accumulation. Sec.
1.537-1(b)(1), Income Tax Regs. An accumulation need not be used
immediately, nor must the plans for its use be consummated within
a short period after the close of the taxable year, provided that
such accumulation will be used within a reasonable time depending
upon all the facts and circumstances relating to the future needs
of the business. Id. Where the future needs of the business are
uncertain or vague, where the plans for the future use of an
accumulation are not specific, definite, and feasible, or where
the execution of such a plan is postponed indefinitely, an
accumulation cannot be justified on the grounds of reasonably
anticipated needs of the business. Id. At trial, respondent may
carry the burden of proof by establishing, e.g., that no estimate
in fact was made as of the close of a particular fiscal year, or
that the estimate was disproportionate to what was reasonably
necessary for petitioner's business, or that petitioner's
asserted need was too speculative to be reasonably anticipated.
See Yates Petroleum Corp. v. Commissioner, T.C. Memo. 1992-146.
For purposes of ruling on the instant motion and to
facilitate our analysis, we accept the grounds and facts asserted
in petitioner's statement as if they are true; however, in
deciding the instant motion, we are not called upon to make
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