In Uncategorized on 12/21/2015 at 17:27

One day before trial, IRS moves to amend its answer to up the deficiency by $268K in Phyllis E. McGrady & Christopher R. Antoniacci, Docket No. 20602-12, filed 12/21/15.

They’re a wee bit late, as their answer was filed two-and-a-half years before IRS made the motion last February. IRS claims they only got a copy of the 2007 tax return in question in January, 2015. That’s a wee bit thin for Judge Lauber, even though Rule 41(a) suggests that requests to amend pleadings should be liberally granted.

It’s another big-ticket scenic easement case.

“We think that respondent has unduly delayed in moving to amend his answers. The administrative case file makes clear that the IRS examination team was aware of the $268,000 contribution and made an explicit decision not to disallow it. The rationale that respondent now asserts for disallowing that deduction seems to be the same as its rationale for disallowing the deduction for the $4.7 million contribution. If respondent’s trial counsel believed that the examination team had erred in failing to disallow a deduction for the $268,000 contribution, it is unclear to the Court why respondent waited two and one-half years after filing his answer in docket no. 20602-12 before seeking leave to amend his answers. Since petitioners’ 2007 tax year was the principal tax year under audit, the assertion that petitioners’ 2007 tax return was not previously available does not strike the Court as a sufficient excuse for this delay.” Order, at p. 2.

I cannot very well say how it strikes me in a blog meant for family reading.

Motions denied.

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