Wm. Dennis Gray - Page 8




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          obliged to concede a case until respondent 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 respondent receives                    
          documentation, respondent is allowed a reasonable period of time            
          in which to analyze the documentation and modify its position               
          accordingly.  Sokol v. Commissioner, supra at 765-766.                      
               In this case, respondent had received information that                 
          petitioner received income from a third party payor.  Petitioner            
          did not respond to respondent's repeated requests for information           
          about the reported income.  Respondent made multiple attempts to            
          obtain the relevant documentation.  When respondent finally                 
          received the documentation, respondent analyzed it and conceded             
          the case.  Based on this record, we find that petitioner failed             
          to show that respondent's position was not substantially                    
          justified.  In fact, respondent was substantially justified.                
          Consequently, petitioner's motion will be denied.                           
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
                                                  An appropriate order and            
                                             decision will be entered.                










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