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Estate of Jephson v. Commissioner, 81 T.C. 999, 1000 (1983);
Allen v. Commissioner, 71 T.C. 577, 579 (1979). Accordingly, the
principles enunciated by the Federal courts in the interpretation
and application of that rule are applicable here. Estate of
Jephson v. Commissioner, supra at 1000-1001; Allen v.
Commissioner, supra at 579.
In general, motions to strike pleadings have not been
favored by the Federal courts. Estate of Jephson v.
Commissioner, supra at 1001; Allen v. Commissioner, supra at 579.
A matter will not be stricken from a pleading unless it is clear
that it can have no possible bearing upon the subject matter of
the litigation. Estate of Jephson v. Commissioner, supra at
1001; Allen v. Commissioner, supra at 579.
“A motion to strike should be granted only when the
allegations have no possible relation to the
controversy. When the court is in doubt whether under
any contingency the matter may raise an issue, the
motion should be denied.” If the matter that is the
subject of the motion involves disputed and substantial
questions of law, the motion should be denied and the
allegations should be determined on the merits. In
addition, a motion to strike will usually not be
granted unless there is a showing of prejudice to the
moving party.
Estate of Jephson v. Commissioner, supra at 1001 (citations
omitted).
As discussed supra, paragraph 8 of respondent’s answer
contains factual allegations regarding Gold Coast’s business
operations, Mr. Wadsworth’s involvement in Gold Coast, and the
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