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producing reasonable and probative information in addition to the
information return. McQuatters v. Commissioner, T.C. Memo. 1998-
88; Dennis v. Commissioner, T.C. Memo. 1997-275; Hardy v.
Commissioner, T.C. Memo. 1997-97, affd. 181 F.3d 1002 (9th Cir.
1999). The taxpayer must have fully cooperated with the
Commissioner before the burden of production would shift to the
Commissioner. “Fully cooperating with the IRS includes (but is
not limited to) the following: bringing the reasonable dispute
over the item of income to the attention of the IRS within a
reasonable period of time, and providing (within a reasonable
period of time) access to and inspection of all witnesses,
information, and documents within the control of the taxpayer (as
reasonably requested by the Secretary).” H. Rept. 104-506, at 36
(1996), 1996-3 C.B. 49, 84. Petitioner did not fully cooperate
with the Commissioner and is not entitled to the benefit of
section 6201. Even assuming arguendo that he is entitled to the
benefit of section 6201, the Commissioner has presented
sufficient information to sustain the determination in the notice
of deficiency.
Petitioner has put himself between a rock and a hard place.
On the one hand, if petitioner did not receive the money, then he
agreed to assist Vaughan in defrauding the Government, he failed
to report extortion, he lied in three letters written to the
Internal Revenue Service, and he lied in his petition filed with
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