Robert and Ines M. Gillespie, et al. - Page 14




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          defenses of the statute of limitations because, in the first                
          case, we deemed petitioners to have conceded that defense by not            
          addressing it in their objection to respondent’s motion for                 
          summary judgment and, in the second case, the claim did not deal            
          with the year at issue in the case.  In docket No. 3405-05L, we             
          rejected a similar claim with respect to 1996 because we deemed             
          petitioners likewise to have conceded the claim.  We did,                   
          however, deny in part respondent’s motion for summary judgment in           
          docket No. 3405-05L because of petitioners’ statute of                      
          limitations claim for 1997.  Petitioners claimed that respondent            
          had backdated the assessment of tax for that year, and as a                 
          result, collection of the tax was time barred.  Petitioners                 
          supported their claim of backdating by an argument concerning the           
          “cycle post date” of the assessment.  Since that argument was               
          unclear, but we were concerned that it might involve a material             
          issue of fact, we declined to adjudicate summarily petitioners’             
          statute of limitations claim for 1997.                                      
               In each of the orders we issued in response to the motions             
          for summary judgment, we warned petitioners and counsel that we             
          were considering the imposition of penalties on petitioners                 
          pursuant to section 6673(a)(1) and excess costs on counsel                  
          pursuant to section 6673(a)(2).  In those orders, we stated our             
          impressions that petitioners, aided by counsel, may have (1)                
          instituted and maintained the proceeding before this Court                  







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