Opinion
21482-19
09-07-2021
Xiu Qiang Chen Petitioner v. Commissioner of Internal Revenue Respondent
ORDER
MARK V. HOLMES JUDGE
This case was on the Court's May 24, 2021 trial calendar for New York City. It is about substantiation of the income and expenses of a now-closed restaurant, and petitioner was not answering phone calls or mail from the IRS. When the case was called from the calendar, Mr. Chen did appear and we were able to hear both sides. We learned then that respondent had not made much progress in informal discovery, and hadn't even sent a Branerton letter. Petitioner speaks little English and appeared with his son, who served as his translator, so we understand that communication might be difficult. We therefore continued the case, with the strong suggestion that respondent send a Branerton letter to help Mr. Chen know what evidence he needed to look for and get to the IRS.
By July the Commissioner was able to report that he kept his promise, and sent Mr. Chen a comprehensive list of the information and documents he wanted to see in order to settle the case or get it ready for trial. Mr. Chen didn't provide the information, but we thought it at least possible that the reason was that respondent asked for everything in only 12 days. We gave Mr. Chen more time, but on August 6, 2021 respondent reported that Mr. Chen has continued not to provide any documents, and now has left the country.
The time has come to set deadlines. It is therefore
ORDERED that on or before November 3, 2021 Mr. Chen send to the respondent's counsel or the IRS Appeals officer assigned to this case all records that he believes substantiate his claimed income and deductions for the tax years at issue. Any records that he does not produce to the IRS will not be allowed into evidence in any trial of these cases. It is also
ORDERED on or before December 1, 2021, respondent either file a status report describing any progress toward settlement or a narrowing of the issues to be tried in these cases, particularly any progress made in informal discovery and at IRS Appeals; or file an appropriate motion to dismiss the case for lack of prosecution.
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