- 10 -
OPINION
A. Petitioner’s Motion for Relief From Deemed Admissions
Generally, a fact that is deemed admitted is conclusively
established. Rule 90(f); see also Sarchapone v. Commissioner,
T.C. Memo. 1983-446. Rule 90(f) provides, however, that the
Court, on motion, may permit an admission to be withdrawn or
modified if (1) the withdrawal or modification would subserve the
presentation of the merits of the case, and (2) if the party
obtaining the admission (the respondent in this case) fails to
satisfy the Court that the withdrawal or modification will
prejudice him in prosecuting his case or defense on the merits.
As we are satisfied that the withdrawal of the deemed admissions
would not subserve the merits of the case and would prejudice
respondent, we shall deny petitioner's motion for relief from the
deemed admissions.7
A party will be prejudiced by the withdrawal of admissions
if he has relied on them and if he will suffer delay and added
expense and will be required to expend additional effort because
of the withdrawal. Morrison v. Commissioner, 81 T.C. 644, 649
(1983). Respondent relied in good faith on the binding effect of
7Several of the deemed admissions were incorporated into the
stipulation of facts. Moreover, certain of the deemed admissions
relating to the dependency exemption issue were effectively
withdrawn by the parties’ agreement to settle the dependency
exemption issue. The deemed admissions covered by petitioner’s
motion are those relating to the charitable contribution
deduction and unreported income issues.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011