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Court setting forth criteria for determining when the
Commissioner is raising a "new matter". A synopsis of these
criteria is as follows:
A new theory that is presented to sustain a
deficiency is treated as a new matter when it either
alters the original deficiency or requires the
presentation of different evidence. * * * A new
theory which merely clarifies or develops the original
determination is not a new matter in respect of which
respondent bears the burden of proof. * * * [Wayne
Bolt & Nut Co. v. Commissioner, 93 T.C. 500, 507
(1989); citations omitted.12]
Here, the relevant issues raised by respondent's notice of
deficiency are the total amount of business gross receipts and
whether petitioner is entitled to deductions that he claimed were
incurred in his business during 1992. The only explanation
stated in the notice of deficiency for increasing 1992 gross
receipts is that the adjustment was based on bank deposits. All
these deposits were to the business account used for petitioner's
consulting business. The only reason for disallowing business
deductions was that petitioner had not substantiated their
deductibility.
12See also Colonnade Condominium, Inc. v. Commissioner, 91
T.C. 793, 795 n.3 (1988); Achiro v. Commissioner, 77 T.C. 881,
890-891 (1981); Estate of Jayne v. Commissioner, 61 T.C. 744,
748-749 (1974); McSpadden v. Commissioner, 50 T.C. 478, 492-493
(1968).
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