- 84 - other courts have, for many years, held taxpayers on questions of general tax liability, and we believe that this is the appropriate standard to apply to respondent in this phase of the proceedings. See Rule 142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933); Am. Pipe & Steel Corp. v. Commissioner, 243 F.2d 125, 126-127 (9th Cir. 1957), affg. 25 T.C. 351 (1955). II. Defining and Applying the Thompson Settlement A. Overview In Al-Safin v. Circuit City Stores, Inc., 394 F.3d at 1258, the Court of Appeals reminded us that its opinion may be consulted to ascertain what was intended by the mandates. In Dixon V, the Court of Appeals described the basis of the “secret settlement agreements” with the Thompsons and the Cravenses as follows: “A condition of their settlements required Thompson and Cravens to remain test case petitioners. * * * With respect to Thompson, McWade agreed to have Thompson’s tax deficiencies reduced in proportion to his attorney’s fees, which exceeded $60,000.” Dixon v. Commissioner, 316 F.3d at 1044; fn. ref. 44(...continued) as a 62-percent reduction. See Part C, infra. We observe that the significant evidentiary facts on this issue are not in dispute, so that the burden of proof does not enter into what we see as a problem of legal characterization. Therefore, the question does not arise whether we should employ some heightened standard of proof, such as “strong proof” or “clear and convincing” proof, that might otherwise arise when a party to a transaction seeks to disregard the form employed. Our resolution of this issue does not depend on the allocation or standard of the burden of proof.Page: Previous 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 Next
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