Law Offices--Richard Ashare, P.C. - Page 15

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          54-56 (1964); see also Crosby v. Commissioner, T.C. Memo.                   
               We are unable to conclude under the facts herein that                  
          respondent violated the second examination prohibition of section           
          7605(b).  The record simply does not persuade us that respondent            
          performed more than one inspection of petitioner's books of                 
          account.  Whereas petitioner argues that a second inspection                
          occurred mainly because the revenue agent, on behalf of the                 
          Commissioner, prepared two reports, we do not agree.  That the              
          Commissioner may issue two or more reports on a single taxable              
          year of a taxpayer does not necessarily mean that the                       
          Commissioner performed more than one examination of the                     
          taxpayer's books of account.  See United States v. Balanced Fin.            
          Mgt., Inc., 769 F.2d 1440, 1446 (10th Cir. 1985) ("'the standard            
          is whether the examination or investigation sought by the IRS is            
          unnecessarily duplicative of some prior examination'" (quoting              
          United States v. Davey, 543 F.2d 996, 1000 (2d Cir. 1976)); see             
          also Brodhead v. Commissioner, T.C. Memo. 1979-113.  The                    
          applicability of section 7605(b), as relevant herein, turns as a            
          threshold matter upon a finding of unnecessary multiple                     
          examinations of a taxpayer's books of account and does not rest             
          upon a finding that a revenue agent may have prepared multiple              
          reports on his or her examination of the underlying year.  See              
          Feldman v. Commissioner, T.C. Memo. 1985-132; see also Hall v.              

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