Holly Ruocco - Page 14

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          petitioner’s motions is that the Internal Revenue Service (IRS)             
          would be required to proceed against either a trust or a limited            
          liability company rather than proceeding against petitioner                 
          directly.  The notices of deficiency, however, determined that              
          the deposits into specific bank accounts were income for services           
          performed by petitioner.  Petitioner raised the entity theory,              
          and respondent’s arguments that the entities should be                      
          disregarded as sham or that the trust was, in the alternative, a            
          grantor trust were raised in defense of petitioner’s arguments.             
          In any event, the IRS may proceed on alternative theories and               
          alternative notices in the circumstances indicated by the record            
          in this case.  See Clapp v. Commissioner, 875 F.2d 1396, 1402               
          (9th Cir. 1989); Criss v. Commissioner, T.C. Memo. 2002-62;                 
          Universal Trust 06-15-90 v. Commissioner, T.C. Memo. 2000-390.              
               The stipulation proposed by respondent, the motion for order           
          to show cause under Rule 91, the order to show cause, and the               
          order deeming facts stipulated for purposes of this case were all           
          consistent with Rule 91.  The statements made in the stipulation            
          and the documents attached to it were all matters “which fairly             
          should not be in dispute.”  See Rule 91(a).  Petitioner did not             
          raise at any time a dispute as to the factual accuracy of the               
          stipulation.  Her objections related solely to her erroneous                

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