George J. Fox and Ruth A. Fox v. Commissioner of Internal Revenue

CUDAHY, Circuit Judge.

The appellants appeal the order of the Tax Court dismissing their petition for a redetermination of tax liability. The Tax Court dismissed the petition for failure to comply with the court’s order compelling discovery, pursuant to Tax Court Rule 104(c), 26 U.S.C. foil. § 7453 (hereinafter T.C.R. 104(c)). We hold that the limitations imposed on the discretion of the district courts to dismiss a case as a discovery sanction pursuant to Rule 37, Federal Rules of Civil Procedure, should also limit the discretion of the Tax Court to dismiss pursuant to Rule 104. Because the…