Opinion
20849-17
02-27-2023
ST. ANDREWS PLANTATION, LLC, JOSEPH N. MCDONOUGH, TAX MATTERS PARTNER, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
ORDER
David Gustafson Judge
Pursuant to our order of February 1, 2023 (Doc. 91), we held a telephone conference with counsel for both parties for the purpose of discussing a routine and schedule for further proceedings. The FPAA upon which this case is based (attached to the petition) explains the reason for the IRS's disallowance of the charitable contribution deduction at issue in this case by stating very summarily:
It has not been established that the claimed deduction meets all of the requirements of Internal Revenue Code Section 170.
Alternatively, if it is determined that the requirements of Internal Revenue Code Section 170 have been satisfied for the claimed non-cash charitable contribution, it has not been established that the value of the contributed property interest exceeded $0.
As to issues other than valuation, the FPAA does not enable a petitioner to know which of the dozens of potential issues under section 170 he might need to prepare to litigate, and as to which petitioner will presumably have the burden of proof at trial. See Rule 142(a). The Commissioner's answer (Doc. 4) gives no further light. Petitioner's trial preparation is stymied by this non-specificity. Consistent with the schedule worked out with the parties (but in some instances allowing greater amounts of time than we discussed), it is
ORDERED that petitioner may propound to respondent a contention interrogatory asking the Commissioner to specify each and every specific issue on which the Commissioner may rely at trial to argue that the disallowance of the charitable contribution deduction should be sustained, to which the response shall be due April 28, 2023. It is further
ORDERED that the parties shall promptly begin any additional discovery that they need to conduct in this case on any issue. Formal discovery requests shall be served no later than May 31, 2023 (so as to require responses by June 30, 2023); and any motion to compel shall be filed no later than July 28, 2023. It is further
ORDERED that, no later than May 31, 2023, the parties shall file a joint status report (or, if that is not expedient, then separate reports) giving their joint or several recommendations for a schedule for: the exchange of expert witness reports; the conducting of any interviews or depositions of experts (and any other additional discovery limited to the experts and their opinions); the exchange of any expert rebuttal reports; the submission of a comprehensive stipulation (which will supplement and complete Docs. 35 and 67, and which the parties may agree to submit in installments); and pretrial memoranda. It is further
ORDERED that the Commissioner's motion (Doc. 61) for partial summary judgment is denied, for the reasons stated in our previous order.