William J. Tully - Page 3




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          does not file a reply as directed herein, the Court will grant              
          respondent's motion and deem admitted for purposes of this case             
          the affirmative allegations in the answer."  Upon petitioner's              
          failure to file a reply, the Court granted respondent's motion              
          and deemed admitted the affirmative allegations of fact set forth           
          in respondent's answer.                                                     
               On April 27, 1999, the Court issued the notice of trial for            
          the instant case for the trial session in Los Angeles,                      
          California, on September 27, 1999.                                          
               On June 21, 1999, respondent filed a motion for partial                
          summary judgment based upon the allegations in respondent's                 
          answer, which allegations were deemed admitted pursuant to Rule             
          37(c).  On June 22, 1999, the Court ordered petitioner to file a            
          response to the motion for partial summary judgment on or before            
          July 22, 1999.  Petitioner failed to file a response.  On June              
          21, 1999, respondent filed a request for admissions pertaining to           
          the addition to tax for delinquency under section 6651(a)(1).               
          Petitioner failed to file a response to respondent's June 21,               
          1999, request.  On August 24, 1999, respondent filed a second               
          motion for partial summary judgment based upon the admissions as            
          to the addition to tax under section 6651(a)(1).2  On August 27,            
          1999, the Court ordered petitioner to file a response to                    

          2    Taken together, respondent's motions for partial summary               
          judgment, if granted, dispose of all of the issues in the instant           
          case.                                                                       





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