John P. Trowbridge, Life Center Houston Business Trust, John P. Trowbridge, Trustee, and Life Choices Business Trust, John P. Trowbridge, Trustee - Page 14

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          against Dr. Trowbridge, which we took under advisement pending              
          respondent’s filing of a (subsequently filed) written motion for            
          default (the default motion).  Respondent proceeded to trial on             
          the remaining amounts at issue (i.e., the additional 1996                   
          deficiency and the additions to tax).9                                      
                                       OPINION                                        
          I.  The Default Motion                                                      
               By the default motion, respondent moves that Dr. Trowbridge            
          be held in default and that a decision be entered that there are            
          deficiencies in tax with respect to him for 1996 and 1997 in the            
          amounts of $146,847 (the initial 1996 deficiency) and $211,508              
          (the 1997 deficiency), respectively, and that a decision be                 
          entered that there are no deficiencies in tax with respect to               
          Life Center and Life Choices.  Respondent moves in the                      
          alternative that Life Center be held in default and that a                  
          decision be entered that there are deficiencies in tax with                 
          respect to Life Center for 1996 and 1997 in the amounts of                  
          $23,195 and $476,918, respectively, and that Life Choices be held           


               9  Respondent bears the burden of proof (i.e., the ultimate            
          burden of persuasion) with respect to the additional 1996                   
          deficiency and the portions of the asserted additions to tax                
          attributable thereto.  See Rule 142(a).  Respondent bears the               
          burden of production (i.e., the burden of moving forward with               
          evidence) with respect to the additions to tax asserted against             
          Dr. Trowbridge in their entirety.  See current sec. 7491(c).                
          Since respondent decided to proceed to trial on those issues to             
          satisfy his evidentiary burdens, we need not decide whether he              
          was required to do so in this default setting.                              




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