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examination is sufficient to commence an examination. Rev. Proc.
97-27, supra, states as follows:
an examination of a taxpayer with respect to
a federal income tax return begins on the
date the taxpayer is contacted in any manner
by a representative of the Service for the
purpose of scheduling any type of examination
of the return. * * * [Id.; emphasis added.]
Respondent argues that the above examples suggest that an
examination may occur without a personal meeting between
respondent’s representative and the taxpayer or the taxpayer’s
representative.
Focusing on the facts before us in this case, we do not
believe that the character of the amounts in dispute for both
1994 and 1996 need be resolved on the basis of the burden of
proof. In spite of the extensive arguments of the parties in
their briefs regarding the burden of proof in this case for both
1994 and 1996, as set forth below, we conclude that the evidence
establishes that the amounts petitioner received that were
denominated as interest in fact constituted interest income for
Federal income tax purposes. We so hold, and we decline to
resolve the parties’ many arguments regarding the commencement of
respondent’s 1996 examination, regarding the applicability of
section 7491(a), and regarding petitioner’s qualification under
the various requirements of section 7491(a).
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