Schneider Interests, L.P., Russ Schneider Farms, L.L.C., Tax Matters Partner - Page 9




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               In the instant case, respondent has not demonstrated that              
          most, if not all, of the information respondent needs could not             
          be obtained through the informal procedures required by Rules               
          70(a), 90(a), and our Branerton opinion.  See Branerton Corp. v.            
          Commissioner, supra.  Indeed, we believe that informal discovery            
          would be particularly useful to respondent, where, as here, the             
          examination phase of respondent’s inquiry was truncated by a                
          premature issuance of the FPAA.  Under such circumstances,                  
          respondent may well be able to use informal discovery procedures            
          to complete the administrative investigation that presumably                
          would have been undertaken if the period for issuance of the FPAA           
          had been extended.2  The actions of respondent’s counsel in the             
          instant case lead us to believe that he does not fully appreciate           
          the importance of our Branerton opinion.  His insistence on                 
          compliance with his formal discovery requests in advance of any             
          conference between the parties does not effectively present an              
          opportunity for the "discussion, deliberation, and an interchange           
          of ideas, thoughts, and opinions between the parties" that our              
          rules contemplate.  See Intl. Air Conditioning Corp. v.                     
          Commissioner, supra at 93.                                                  




               2Informal discovery will provide respondent with a basis to            
          decide whether respondent may pursue unconsented deposition                 
          testimony under Rule 75--a procedure which, respondent indicates,           
          may be necessary.                                                           





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