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With respect to the case at bar, petitioner did not claim
entitlement to the benefits of Section 530 until posttrial
briefing. Generally, issues raised for the first time on brief
will not be considered when to do so would prevent the opposing
party from presenting evidence that might have been offered if
the issue had been timely raised. DiLeo v. Commissioner, 96 T.C.
858, 891 (1991), affd. 959 F.2d 16 (2d Cir. 1992); Shelby U.S.
Distribs., Inc. v. Commissioner, 71 T.C. 874, 885 (1979). Here,
however, even if we were to treat the issue as properly before
us, petitioner’s position is without merit. It is clear that
petitioner failed to establish a reasonable basis for not
treating Ridge as an employee.
Concerning the existence of a reasonable basis for purposes
of Section 530(a)(1), Section 530(a)(2) sets forth three
statutory safe havens. Reliance upon any of the circumstances
enumerated in subparagraph (A), (B), or (C) of Section 530(a)(2)
is deemed sufficient to establish the requisite reasonable basis.
Subparagraph (A) lists judicial precedent, published
rulings, technical advice with respect to the taxpayer, or a
letter ruling to the taxpayer. On brief, petitioner cites Tex.
Carbonate Co. v. Phinney, 307 F.2d 289 (5th Cir. 1962), and
Automated Typesetting, Inc. v. United States, 527 F. Supp. 515
(E.D. Wis. 1981), in support of the premise that petitioner
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