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opportunity to explain and provide documentation establishing the
legitimacy and deductibility of the expenses.
On August 20, 1999, this Court set the case on a January 24,
2000, trial calendar at Los Angeles.
On October 14, 1999, respondent sent a “Branerton” letter,
see Branerton v. Commissioner, 64 T.C. 191 (1975), to
petitioner's representative requesting that additional
information necessary for respondent to analyze the constructive
dividend issue be sent by November 3, 1999. No response was
received by November 3, 1999.
Around December 3, 1999, petitioner's counsel served formal
discovery requests on respondent. Respondent objected to
petitioner's use of formal discovery without using informal
discovery first, but responded to two of the three requests.
On December 10, 1999, respondent requested that the parties
meet. The meeting was set for January 2000. On December 13,
1999, respondent received the additional information from
petitioner that had been requested on October 14, 1999. On
January 14, 2000, petitioner's representative and respondent met.
On January 19, 2000, respondent agreed to concede the case.
The Court entered an agreed decision document in this case
on January 31, 2000. On March 2, 2000, the Court received
petitioner’s motion for litigation and administrative costs.
Consequently, the Court sua sponte vacated the agreed decision,
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