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Thereafter, respondent sent to petitioners a letter in
accordance with Branerton Corp. v. Commissioner, 61 T.C. 691, 692
(1974) (Branerton letter), suggesting a conference between the
parties and requesting information and documentation in support
of the positions taken by petitioners on their return. With
respect to petitioners’ claim that petitioner should be
classified as an independent contractor, respondent identified as
possible supporting materials billing records for patients
treated outside of DWP, employment contracts, business licenses,
business cards, advertising, yellow pages listings, accounting
records, and so forth. As regards the claimed expenses,
requested items included receipts, invoices, ledgers, journals,
etc., showing that the amounts were actually paid or incurred and
were ordinary and necessary business expenses. Respondent in the
Branerton letter also conceded certain adjustments reflected for
1997 in the notice of deficiency, primarily related to self-
employment income and taxes.
Petitioners neither attended the proposed meeting nor
contacted respondent prior to the suggested date. A letter from
Mr. Judge was apparently thereafter sent to the Internal Revenue
Service and indicated that petitioners were in Ireland and were
suffering from medical difficulties. Petitioners did not at that
juncture, nor at any time since, produce the corroborating
materials suggested by respondent.
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