- 18 - (reversing and remanding because it was “unclear from the record whether * * * [the taxpayer] in fact relied on any specific industry practice in reaching its decision to treat its * * * [workers] as non-employee tenants, let alone whether such reliance was reasonable”); Select Rehab, Inc. v. United States, 205 F. Supp. 2d 376, 380 (M.D. Pa. 2002) (“The taxpayer must show that it relied upon those grounds [alleged as a reasonable basis], and that the reliance was reasonable.”); W. Va. Pers. Servs., Inc. v. United States, 78 AFTR 2d 96-6600, at 96-6608, 96-2 USTC par. 50,554, at 85,919 (S.D. W. Va. 1996) (“The plain meaning of section 530(a)(2) is that only evidence known to and relied upon by the taxpayer is relevant. Facts that are learned after the incorrect treatment of the employees * * * are not facts that a taxpayer relied upon in making its original decision regarding how to treat its employees.”). Until a few months before trial, petitioner did not purport to rely on Section 530 or the bases described therein and expressly disclaimed any dependence on the statute. Petitioner’s present claim of reliance is not credible. At trial, Stark testified as a witness but presented no evidence that he was aware of Tex. Carbonate Co. v. Phinney, supra, or that anyone had ever discussed the case with him. Petitioner proposed to call Grey, the accountant who advised petitioner and prepared petitioner’s tax returns. Grey was notPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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