Stanley D. and Rosemary A. Clough - Page 12




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          the declaration executed by Mr. Holt6 do not qualify under an               
          exception to the hearsay rule because those documents were                  
          prepared in anticipation of litigation and, therefore, they are             
          inherently unreliable.  See Palmer v. Hoffman, 318 U.S. 109, 113-           
          114 (1943).                                                                 
          As previously noted, the Commissioner is authorized to send                 
          notices of deficiency to taxpayers by certified or registered               
          mail.  Sec. 6212(a).  Consistent with the mandate of section                
          6212(a), and in order to provide a means for determining the                
          dates regarding the issuance of notices of deficiency, it is                
          necessary and proper for the Commissioner to prepare and retain             
          certified mail lists in the normal course of operations.  It is,            
          therefore, incorrect to state that the certified mail list was              
          prepared in anticipation of litigation.  Rather, it is a record             
          of regularly conducted activities addressed by rule 803(6) of the           
          Federal Rules of Evidence.                                                  
               The declarations executed by Ms. Petersen and Mr. Holt were            
          prepared in the course of litigation in order to satisfy the                
          requirements of rule 902(11) of the Federal Rules of Evidence.              
          The purpose of the declarations is to authenticate the certified            
          mail list.  In short, the declarations show that:  (1) The                  
          certified mail list was prepared and retained by respondent in              


               6  Although petitioners do not challenge the declaration               
          executed by Ms. Petersen, our analysis is equally applicable to             
          her declaration.                                                            





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