Opinion
16277-16L
03-29-2023
KEVIN J. MIRCH & MARIE C. MIRCH, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
Patrick J. Urda, Judge.
Petitioners Kevin J. Mirch and Marie C. Mirch challenge a notice of determination upholding the filing of a notice of federal tax lien with respect to their 2004, 2006, and 2008 tax years. After concessions, the parties' dispute focuses on the Mirches' underlying liability for 2006, particularly the validity of the notice of deficiency for that year and the Mirches' substantiation of various deductions and expenses claimed on their tax return.
On December 9, 2022, we inquired of the parties as to the length and dates of trial. [Doc. 118.] The Mirches responded that trial would take ten days and, as relevant here, indicated their unavailability for a trial the week of June 20, 2023 because of a trial in the California state court system during the preceding two weeks. [Doc. 120.] The Commissioner stated that trial would take no more than two days. [Doc. 121.]
Given the age of the case (and the tax year at issue), we will schedule trial in this case for June 22 and 23, 2023. We note that the Mirches' estimate of ten days is the same estimate made prior to the settlement of the parties' disputes as to 2004 and 2008 [Doc. 48], and we believe that trial will be accomplished in considerably less time than that estimate.
This case primarily involves questions of substantiation, as well as Mrs. Mirch's status as a real estate professional for purposes of I.R.C. § 469. In order to facilitate efficient trial preparation, we will order the Mirches (followed by the Commissioner) to complete a substantiation worksheet to identify the documentary support for the deductions and expenses that they claimed on Schedule C and Schedule E of their 2006 tax return. It is
ORDERED that this case is calendared for trial at the Court's June 20, 2023, San Diego, California trial session, with a time and date certain of 10:00 a.m. (Pacific Time) on Thursday, June 22, 2023. It is further
ORDERED that the Clerk of the Court is directed to attach a copy of the Court's Standing Pretrial Order for the June 20, 2023, San Diego, California trial session to this Order. It is further
ORDERED that, on or before May 9, 2023, the Mirches shall complete those portions of the form attached to this Order that relate to their positions as to substantiation. In particular, the Mirches will identify all documents on which they plan to rely at trial to substantiate their claimed deductions and expenses. The Mirches shall file the completed form through the DAWSON system as a status report. It is further
ORDERED that, on or before May 23, 2023, the Commissioner shall file a response to the Mirches' status report in which he completes those portions of the substantiation form related to his positions.
This Order constitutes official notice of its contents to the parties.
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