117 T.C. No. 24
UNITED STATES TAX COURT
SAMUEL T. SEAWRIGHT AND CAROL A. SEAWRIGHT, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 1796-00. Filed December 18, 2001.
R’s examination of Ps’ tax liability commenced no
later than July 16, 1998. After Ps petitioned this
Court to redetermine the deficiency, R’s trial counsel
informally contacted potential third-party witnesses
without providing advance notice to Ps.
1. Held: Sec. 7602(c), I.R.C., which requires
that R give the taxpayer advance notice of third-party
contacts regarding R’s examination or collection
activities, is inapplicable with respect to R’s
examination activities here, which all occurred before
the Jan. 19, 1999, effective date of sec. 7602(c).
2. Held, further, sec. 7602(c), I.R.C., is
inapplicable with respect to R’s trial preparation
activities.
3. Held, further, sec. 7602(e), I.R.C., which
restricts R’s use of financial status or economic
reality examination techniques, is inapplicable with
respect to R’s examination techniques which were
employed before the July 22, 1998, effective date of
sec. 7602(e), I.R.C.
4. Held, further, Ps bear the burden of proof.
Page: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011