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the audits hindered the audit process. The record also
establishes that respondent believed the partnerships were
abusive tax shelters. Such delay in completing an examination
because of the difficulties in obtaining documentation or because
of the Commissioner’s suspicion of fraud does not prove that the
Commissioner was erroneous or dilatory in performing ministerial
acts. Banat v. Commissioner, supra. Accordingly, issuing the
FPAAs after 1987 was not a delay in performing a ministerial act.
Petitioner’s second claim alleges that the audits of SGE for
1985 and 1986 were so replete with errors that the audits had to
be completely redone. Petitioner asserts that four of
respondent’s agents were assigned to District Counsel in August
1990 to reaudit SGE for 1985 and 1986.
While the parties have stipulated that the four agents were
assigned to District Counsel to assist in trial preparation of
the Hoyt investor partnerships docketed Tax Court cases for the
1980 through 1986 taxable years, petitioner argues that the
agents’ work was not limited to trial preparation and appeared to
be work traditionally done at the audit stage. Petitioner
concludes that the existence of the “second” audit is “sufficient
evidence that the first audit was replete with errors.”
Petitioner’s conclusion is without merit. His argument fails to
specify an error or delay in performing a ministerial act.
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