Patricia R. Carpentier - Page 10




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          cooperate and to address the merits of respondent’s determination           
          throughout the pendency of this proceeding.  At each step of the            
          litigation process, petitioner’s response to respondent’s or the            
          Court’s attempts to address the merits was to make collateral               
          attacks on the Court’s and respondent’s authority.  Petitioner              
          alleged various conspiracies to defraud her, but she did not                
          advance evidence showing respondent’s determination was in error.           
          When respondent was finally able to obtain information about the            
          Forms 1099 (mostly from third-party sources), adjustments were              
          made reducing the deficiency determination.  The reduced income             
          tax deficiencies, agreed to by petitioner, are attributable to              
          unreported income from rental properties and unreported income              
          from interest and dividends.                                                
          Discussion                                                                  
          A.   Respondent’s Motion To Dismiss                                         
               Under Rule 123(b) the Court may dismiss a case and enter a             
          decision where a taxpayer fails properly to prosecute or to                 
          comply with the Court’s Rules.  We have concluded that, in                  
          deciding whether to dismiss, we balance “rival consideration[s]             
          * * * [involving] the policy in favor of having cases heard on              
          their merits with the policy in favor of avoiding harassment to             
          the defending party arising from unjustifiable delay.”  Freedson            
          v. Commissioner, 67 T.C. 931, 935 (1977), affd. 565 F.2d 954 (5th           








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