The proposed explanatory paragraphs should be carefully reviewed to make sure that the taxpayer will be adequately apprised of the nature of the adjustment and that all of the grounds necessary to support the determination are included. Citations to Code sections are not required but, if provided, should be comprehensive. Only those alternative theories that result in smaller deficiencies than the primary theory may be mentioned in the notice. An intended alternative resulting in more deficiency than the primary theory could be switched to become the primary theory, or could be introduced in the answer, with a request for a larger deficiency. Conflicting determinations may raise a question as to the presumptive correctness of the determination, particularly if made for the same taxable year of the same taxpayer.
Some conflicting determinations do have to be made.
For example, the determination that the income is includable for a taxpayer in each of two years or in respect of each of two taxpayers may be necessary to protect the revenue. It is a case by case decision. Doubtful instances should be resolved by District Counsel. These amounts should not be asserted in the notice of deficiency. Instead, they should be assessed immediately.