John D. Shea - Page 43




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               Our jurisprudence and that of the Ninth Circuit is                     
          sufficiently murky on this issue to justify using section 7522(a)           
          to clarify the situation and set ourselves and our litigants on             
          the right path for the future.                                              
               In so using section 7522(a), I frankly am impelled by                  
          pragmatic considerations.  Commentators have suggested that the             
          present situation is unsatisfactory because it encourages--even             
          rewards--vagueness and imprecision in the Commissioner's                    
          deficiency notices and discourages the specificity that tells               
          taxpayers the points they must put in issue in their petitions              
          and prove at trial.  It's appropriate to use section 7522(a) as             
          the device for repudiating the line of cases represented by Sorin           
          v. Commissioner, supra.                                                     
               There's a theoretical as well as a pragmatic justification             
          for so using section 7522(a) that answers the questions posed in            
          Judge Halpern's concurrence, pp. 36-37.  Judge Halpern follows up           
          the general question--Just what is section 7522(a) supposed to              
          accomplish?--by asking what justifies our decision to sanction a            
          vague notice by shifting the burden of proof when the                       
          Commissioner's theory is finally put forth, as opposed to                   
          applying some other sanction, such as extending the period of               
          limitations or awarding attorney's fees.  The answer, I submit,             
          is that shifting the burden on the ground that the theory, once             
          stated by the Commissioner, constitutes "new matter" is an                  





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