Gary Gealer - Page 12

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          1999, and respondent's position was therefore not substantially             
               Whenever there is a factual determination, the Commissioner            
          is not obliged to concede a case until the Commissioner receives            
          the necessary documentation which proves the taxpayer's                     
          contentions.  Brice v. Commissioner, T.C. Memo. 1990-355, affd.             
          without published opinion 940 F.2d 667 (9th Cir. 1991); Currie v.           
          Commissioner, T.C. Memo. 1989-23.  Moreover, after the                      
          documentation is received, the Commissioner is provided a                   
          reasonable period of time in which to analyze it and modify his             
          position accordingly.  Sokol v. Commissioner, 92 T.C. at 765-766.           
               Here respondent first had to analyze the documentation with            
          regard to the pending trial for The Fourth Dreamer.  Respondent             
          had the information in his possession for 2 months and was in the           
          process of reviewing the material with regard to the corporate              
          return when the answer was filed in this case.  At that time the            
          records were associated with The Fourth Dreamer audit.  Moreover,           
          respondent requested further information relating to the                    
          constructive dividend issue in October 1999 and did not receive             
          that information until December 1999, only a month before                   
          respondent conceded the constructive dividend issue and related             
          issues.  Respondent was entitled to a reasonable amount of time             
          to review the documents and other information.  Under the                   
          circumstances we find that the period of review was reasonable              

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