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awarded where a case was settled at the time of trial after the
taxpayer substantiated his basis to reduce sales proceeds
determined to be income).
The record in this case establishes repeated failures of
petitioner to meet with the IRS or respondent’s counsel and to
provide the information that ultimately led to the stipulation
and settlement of various items of income in this case. There
was no stipulation with respect to the claimed bad debt expenses
because petitioner did not raise them prior to trial, tendered
purported notes only the day of trial, and tendered copies of
canceled checks 6 months after trial as an attachment to his
answering brief. Petitioner’s failure to produce the documentary
materials was a violation of the Court’s Standing Pre-Trial Order
and the specific order of May 6, 2003, granting respondent’s
motion to compel production of documents. Petitioner’s only
explanation is that he was busy and that he did the same thing in
relation to a prior case that was settled with a determination
that he owed no additional taxes for 1994 and 1998. Petitioner’s
violation of the Court’s orders and Rules on a prior occasion,
however, is not an excuse for his repeating that conduct. The
record supports the inference that petitioner maintained this
action primarily for delay. In any event, the record is clear
that he unreasonably failed to pursue available administrative
remedies. The facts of this case are indistinguishable from
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