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(B) the taxpayer had maintained all records
required under this title and has cooperated with
reasonable requests by the Secretary for witnesses,
information, documents, meetings, and interviews; and
(C) in the case of a partnership, corporation, or
trust, the taxpayer is described in section
7430(c)(4)(A)(ii).
The burden is on the taxpayer to show that he satisfied these
prerequisites. H. Conf. Rept. 105-599, at 240, 242 (1998), 1998-
3 C.B. 747, 994, 996.
Respondent contends, among other things, that petitioner did
not cooperate with respondent’s reasonable requests for
information, documents, and interviews; therefore, the burden of
proof does not shift to respondent. Respondent’s IDRs and
request to interview petitioner were requests for information,
documents, and an interview. Thus, we must decide whether
respondent’s requests were reasonable and whether petitioner
failed to cooperate.
A. Reasonable Request
We consider all the surrounding facts and circumstances of
this case in deciding whether respondent’s request for witnesses,
information, documents, meetings, and interviews is reasonable.
Respondent requested information concerning the settlement
documents regarding UTA’s termination of petitioner and regarding
petitioner’s tax return information for the years in issue. This
information was relevant to the determination of the taxable
amount of the May 1996 payment, the November 1996 payment, the
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