TITLE VII

DISCOVERY

Rule 70.  General Provisions
    (a) General.
   (1) Methods and limitations of discovery. In conformity with
these Rules, a party may obtain discovery by written
interrogatories (Rule 71), by production of documents or things
(Rules 72 and 73), by depositions upon consent of the parties
(Rule 74), by depositions without consent of the parties in
certain cases (Rule 75), or by depositions of expert witnesses
(Rule 76).  However, the Court expects the parties to attempt to
attain the objectives of discovery through informal consultation
or communication before utilizing the discovery procedures
provided in these Rules. Discovery is not available under these
Rules through depositions except to the limited extent provided
in Rules 74, 75, and 76. See Rules 91(a) and 100 regarding
relationship of discovery to stipulations.
   (2) Time for discovery. Discovery shall not be commenced,
without leave of Court, before the expiration of 30 days after
joinder of issue (see Rule 38), and shall be completed, unless
otherwise authorized by the Court, no later than 45 days prior to
the date set for call of the case from a trial calendar.
Discovery by a deposition under Rules 75 and 76 may not be
commenced before a notice of trial has been issued or the case
has been assigned to a Judge or Special Trial Judge and shall be
completed within the time provided by the preceding sentence. See
Rules 75(a) and 76(c). Discovery of matters which are relevant
only to the issue of a party's entitlement to reasonable
litigation or administrative costs shall not be commenced,
without leave of Court, before a motion for reasonable litigation
or administrative costs has been noticed for a hearing, and shall
be completed, unless otherwise authorized by the Court, no later
than 45 days prior to the date set for hearing.
   (3) Cases consolidated for trial. With respect to a common
matter in cases consolidated for trial, discovery may be had by
any party to such a case to the extent provided by these Rules,
and, for that purpose, the reference to a "party" in this Title
VII, in Title VIII, or in Title X, shall mean any party to any of
the consolidated cases involving such common matter.
   (b) Scope of discovery.
   (1) The information or response sought through discovery may
concern any matter not privileged and which is relevant to the
subject matter involved in the pending case. It is not ground for
objection that the information or response sought will be
inadmissible at the trial, if that information or response
appears reasonably calculated to lead to discovery of admissible
evidence, regardless of the burden of proof involved. If the
information or response sought is otherwise proper, it is not
objectionable merely because the information or response involves
an opinion or contention that relates to fact or to the
application of law to fact. But the Court may order that the
information or response sought need not be furnished or made
until some designated time or a particular stage has been reached
in the case or until a specified step has been taken by a party.
   (2) The frequency or extent of use of the discovery methods
set forth in paragraph (a) shall be limited by the Court if it
determines that: (A) the discovery sought is unreasonably
cumulative or duplicative, or is obtainable from some other
source that is more convenient, less burdensome, or less
expensive; (B) the party seeking discovery has had ample
opportunity by discovery in the action to obtain the information
sought, or (C) the discovery is unduly burdensome or expensive,
taking into account the needs of the case, the amount in
controversy, limitations on the parties' resources, and the
importance of the issues at stake in the litigation. The Court
may act upon its own initiative after reasonable notice or
pursuant to a motion under Rule 103.
   (c) Party's statements. Upon request to the other party and
without any showing except the assertion in writing that the
requestor lacks and has no convenient means of obtaining a copy
of a statement made by the requestor, a party shall be entitled
to obtain a copy of any such statement which has a bearing on the
subject matter of the case and is in the possession or control of
another party to the case.
   (d) Use in case. The answers to interrogatories, things
produced in response to a request, or other information or
responses obtained under Rules 71, 72, 73, 74, 75, and 76, may be
used at trial or in any proceeding in the case prior or
subsequent to trial to the extent permitted by the rules of
evidence. Such answers or information or responses will not be
considered as evidence until offered and received as evidence. No
objections to interrogatories or the answers thereto, or to a
request to produce or the response thereto, will be considered
unless made within the time prescribed, except that the objection
that an interrogatory or answer would be inadmissible at trial is
preserved even though not made prior to trial.
   (e) Signing of discovery requests, responses, and objections.
   (1) Every request for discovery or response or objection
thereto made by a party represented by counsel shall be signed by
at least one counsel of record. A party who is not represented by
counsel shall sign the request, response, or objection. The
signature shall conform to the requirements of Rule 23(a)(3). The
signature of counsel or a party constitutes a certification that
the signer has read the request, response, or objection, and that
to the best of the signer's knowledge, information, and belief
formed after a reasonable inquiry, it is (A) consistent with
these Rules and warranted by existing law or a good faith
argument for the extension, modification, or reversal of existing
law. (B) not interposed for any improper purpose, such as to
harass or to cause unnecessary delay or needless increase in the
cost of litigation, and (C) not unreasonable or unduly burdensome
or expensive, given the needs of the case, the discovery already
had in the case, the amount in controversy, and the importance of
the issues at stake in the litigation. If a request, response, or
objection is not signed, it shall be stricken, unless it is
signed promptly after the omission is called to the attention of
the party making the request, response, or objection, and a party
shall not be obligated to take any action with respect to it
until it is signed.
   (2) If a certification is made in violation of this Rule, then
the Court upon motion or upon its own initiative, may impose upon
the person who made the certification, the party on whose behalf
the request, response, or objection is made, or both, an
appropriate sanction, which may include an order to pay the
amount of the reasonable expenses incurred because of the
violation, including reasonable counsel's fees.
   (f) Other applicable rules. For Rules concerned with the
frequency and timing of discovery in relation to other
procedures, supplementation of answers, protective orders, effect
of evasive or incomplete answers or responses, and sanctions and
enforcement action, see Title X.

Rule 71.  Interrogatories
    (a) Availability. Any party may, without leave of Court,
serve upon any other party written interrogatories to be answered
by the party served or, if the party served is a public or
private corporation or a partnership or association or
governmental agency, by an officer or agent who shall furnish
such information as is available to the party.
   (b) Answers. All answers shall be made in good faith and as
completely as the answering party's information shall permit.
However, the answering party is required to make reasonable
inquiry and ascertain readily obtainable information. An
answering party may not give lack of information or knowledge as
an answer or as a reason for failure to answer, unless such party
states that such party has made reasonable inquiry and that
information known or readily obtainable by such party is
insufficient to enable such party to answer the substance of the
interrogatory.
   (c) Procedure. Each interrogatory shall be answered separately
and fully under oath, unless it is objected to, in which event
the reasons for the objection shall be stated in lieu of the
answer. The answers are to be signed by the person making them
and the objections shall be signed by the party or the party's
counsel. The party, on whom the interrogatories have been served,
shall serve a copy of the answers, and objections if any, upon
the propounding party within 45 days after service of the
interrogatories. The Court may allow a shorter or longer time.
The burden shall be on the party submitting the interrogatories
to move for an order with respect to any objection or other
failure to answer an interrogatory, and in that connection the
moving party shall annex the interrogatories to the motion, with
proof of service on the other party, together with the answers
and objections, if any. Prior to moving for such an order,
neither the interrogatories nor the response shall be filed with
the Court.
   (d) Experts.
   (1) By means of written interrogatories in conformity with
this Rule, a party may require any other party (A) to identify
each person whom the other party expects to call as an expert
witness at the trial of the case, giving the witness' name,
address, vocation or occupation, and a statement of the witness'
qualifications, and (B) to state the subject matter and the
substance of the facts and opinions to which the expert is
expected to testify, and give a summary of the grounds for each
such opinion, or, in lieu of such statement to furnish a copy of
a report of such expert presenting the foregoing information.
   (2) For provisions regarding the submission and exchange of
expert witness reports, see Rule 143(f). That Rule shall not
serve to extend the period of time under paragraph (c) of this
Rule within which a party must answer any interrogatory directed
at discovering (A) the identity and qualifications of each person
whom such party expects to call as an expert witness at the trial
of the case and (B) the subject matter with respect to which the
expert is expected to testify.
   (e) Option to produce business records. Where the answer to an
interrogatory may be derived or ascertained from the business
records of the party upon whom the interrogatory has been served,
or from an examination, audit, or inspection of such business
records, or from a compilation, abstract, or summary based
thereon, and the burden of deriving or ascertaining the answer is
substantially the same for the party serving the interrogatory as
for the party served, it is sufficient answer to such
interrogatory to specify the records from which the answer may be
derived or ascertained and to afford to the party serving the
interrogatory reasonable opportunity to examine, audit, or
inspect such records and to make copies, compilations, abstracts,
or summaries.

Rule 72.  Production of Documents and Things
    (a) Scope. Any party may, without leave of Court, serve on
any other party a request to:
   (1) Produce and permit the party making the request, or
someone acting on such party's behalf, to inspect and copy any
designated documents (including writings, drawings, graphs,
charts, photographs, phono-records, and other data compilations
from which information can be obtained, translated, if necessary,
by the responding party through detection devices into reasonably
usable form), or to inspect and copy, test, or sample any
tangible thing, to the extent that any of the foregoing items are
in the possession, custody, or control of the party on whom the
request is served; or
   (2) Permit entry upon designated land or other property in the
possession or control of the party upon whom the request is
served for the purpose of inspection and measuring, surveying,
photographing, testing, or sampling the property or any
designated object or operation thereon.
   (b) Procedure. The request shall set forth the items to be
inspected, either by individual item or category, and describe
each item and category with reasonable particularity. It shall
specify a reasonable time, place, and manner of making the
inspection and performing the related acts. The party upon whom
the request is served shall serve a written response within 30
days after service of the request. The Court may allow a shorter
or longer time. The response shall state, with respect to each
item or category, that inspection and related activities will be
permitted as requested, unless the request is objected to in
whole or in part, in which event the reasons for objection shall
be stated. If objection is made to part of an item or category,
then that part shall be specified. To obtain a ruling on an
objection by the responding party, on a failure to respond, or on
a failure to produce or permit inspection, the requesting party
shall file an appropriate motion with the Court and shall annex
thereto the request, with proof of service on the other party,
together with the response and objections if any. Prior to moving
for such a ruling, neither the request nor the response shall be
filed with the Court.
   (c) Foreign petitioners. For production of records by foreign
petitioners, see Code Section 7456(b).

Rule 73.  Examination by Transferees
    (a) General. Upon application to the Court and subject to
these Rules, a transferee of property of a taxpayer shall be
entitled to examine before trial the books, papers, documents,
correspondence, and other evidence of the taxpayer or of a
preceding transferee of the taxpayer's property, but only if the
transferee making the application is a petitioner seeking
redetermination of such transferee's liability in respect of the
taxpayer's tax liability (including interest, additional amounts,
and additions provided by law).  Such books, papers, documents,
correspondence, and other evidence may be made available to the
extent that the same shall be within the United States, will not
result in undue hardship to the taxpayer or preceding transferee,
and in the opinion of the Court is necessary in order to enable
the transferee to ascertain the liability of the taxpayer or
preceding transferee.
   (b) Procedure. A petitioner desiring an examination permitted
under paragraph (a) shall file an application with the Court,
showing that such petitioner is entitled to such an examination,
describing the documents and other materials sought to be
examined, giving the names and addresses of the persons to
produce the same, and stating a reasonable time and place where
the examination is to be made. If the Court shall determine that
the applicable requirements are satisfied, then it shall issue a
subpoena, signed by a Judge, directed to the appropriate person
and ordering the production at a designated time and place of the
documents and other materials involved. If the person to whom the
subpoena is directed shall object thereto or to the production
involved, then such person shall file the objections and the
reasons therefor in writing with the Court, and serve a copy
thereof upon the applicant, within 10 days after service of the
subpoena or on or before such earlier time as may be specified in
the subpoena for compliance. To obtain a ruling on such
objections, the applicant for the subpoena shall file an
appropriate motion with the Court. In all respects not
inconsistent with the provisions of this Rule, the provisions of
Rule 72(b) shall apply where appropriate.
   (c) Scope of examination. The scope of the examination
authorized under this Rule shall be as broad as is authorized
under Rule 72(a), including, for example, the copying of such
documents and materials.

Rule 74.  Depositions for Discovery Purposes--Upon Consent
of Parties
    (a) Depositions in pending cases. Upon consent of all the
parties to a case, and within the time limits provided in Rule
70(a)(2), a deposition for discovery purposes may be taken either
of a party or a non-party witness.  Such consent shall be set
forth in a stipulation filed in duplicate with the Court, which
shall contain the information required in Rule 81(d) and which
otherwise shall be subject to the procedure provided in Rule
81(d). Unless the Court shall determine otherwise for good cause
shown, the taking of such a deposition will not be regarded as
sufficient ground for granting a continuance from a date or place
of trial theretofore set.
   (b) Notice to non-party witness. A notice of deposition shall
be served on a non-party witness. The notice shall state that the
deposition is to be taken under Rule 74 and shall set forth the
name of the party or parties seeking the deposition, the time and
place proposed for the deposition, and the name of the officer
before whom the deposition is to be taken. If the deposition is
to be taken on written questions, then a copy of the written
questions shall be annexed to the notice. With respect to the
deposition of an organization described in Rule 81(c), the notice
shall also set forth the information required under that Rule,
and the organization shall make the designation authorized by
that Rule.
   (c) Objection by non-party witness. Within 15 days after
service of the notice of deposition, a non-party witness shall
serve on the parties seeking the deposition any objections to the
deposition. The burden shall be upon a party seeking the
deposition to move for an order with respect to such objection or
other failure of the non-party witness, and such party shall
annex to any such motion the notice of deposition with proof of
service thereof, together with a copy of the response and
objections, if any.
   (d) Transcript. A transcript shall be made of every deposition
taken under this Rule, but the transcript and exhibits introduced
in connection with the deposition shall not be filed with the
Court. See Rule 81(h)(3).
   (e) Depositions upon written questions. Depositions under this
Rule may be taken upon written questions rather than upon oral
examination. The use of such written questions is not favored,
and the deposition should not be taken in this manner in the
absence of a special reason. See Rule 84(a). There shall be an
opportunity for cross-questions and redirect questions to the
same extent and within the same time periods as provided in Rule
84(b) (starting with service of the notice of deposition rather
than service of an application).  With respect to taking the
deposition, the procedure of Rule 84(c) shall apply.
   (f) Other applicable rules. Depositions for discovery purposes
under this Rule shall be governed by the provisions of the
following Rules with respect to the matters to which they apply:
Rule 81(e) (persons before whom deposition taken), 81(f) (taking
of deposition), 81(g) (expenses), 81(h) (execution, form and
return of deposition), 81(i) (use of deposition), and Rule 85(b),
(c), (d), and (e) (objections and irregularities). For Rules
concerned with the timing and frequency of depositions,
supplementation of answers, protective orders, effect of evasive
or incomplete answers or responses, and sanctions and enforcement
action, see Title X.

Rule 75.  Depositions for Discovery Purposes--Without
Consent of Parties in Certain Cases
    (a) When depositions may be taken. After a notice of trial
has been issued or after a case has been assigned to a Judge or
Special Trial Judge of the Court, and within the time for
completion of discovery under Rule 70(a)(2), any party may,
without leave of Court, take a deposition for discovery purposes
of a non-party witness in the circumstances described in
paragraph (b) of this Rule. Unless the Court shall determine
otherwise for good cause shown, the taking of such a deposition
will not be regarded as sufficient ground for granting a
continuance from a date or place of trial theretofore set.
   (b) Availability. The taking of a deposition of a non-party
witness under this Rule is an extraordinary method of discovery
and may be used only where a non-party witness can give testimony
or possesses documents or things which are discoverable within
the meaning of Rule 70(b) and where such testimony, documents, or
things practicably cannot be obtained through informal
consultation or communication (Rule 70(a)(1)) or by a deposition
taken with consent of the parties (Rule 74). If such requirements
are satisfied, then a deposition may be taken under this Rule,
for example, where a party is a member of a partnership and an
issue in the case involves an adjustment with respect to such
partnership, or a party is a shareholder of an electing small
business corporation (as described in Code Section 1371(b) prior
to the enactment of the Subchapter S Revision Act of 1982), and
an issue in the case involves an adjustment with respect to such
corporation. See Title XXIV, relating to partnership actions,
brought under provisions first enacted by the Tax Equity and
Fiscal Responsibility Act of 1982.
   (c) Notice. A party desiring to take a deposition under this
Rule shall give notice in writing to every other party to the
case and to the non-party witness to be deposed. The notice shall
state that the deposition is to be taken under Rule 75 and shall
set forth the name of the party seeking the deposition, the name
and address of the person to be deposed, the time and place
proposed for the deposition, and the officer before whom the
deposition is to be taken. If the deposition is to be taken on
written questions, a copy of the questions shall be annexed to
the notice.
   (d) Objections. Within 15 days after service of the notice of
deposition, a party or a non-party witness shall serve on the
party seeking the deposition any objections to the deposition.
The burden shall be upon the party seeking the deposition to move
for an order with respect to any such objections or any failure
of the non-party witness, and such party shall annex to any such
motion the notice of deposition with proof of service thereof,
together with a copy of any responses and objections. Prior to
moving for such an order, neither the notice nor the responses
shall be filed with the Court.
   (e) Other applicable rules. Depositions for discovery purposes
under this Rule shall be governed by the provisions of the
following Rules with respect to the matters to which they apply:
Rule 74(d) (transcript), 74(e) (depositions upon written
questions), Rule 81(c) (designation of person to testify), 81(e)
(person before whom deposition taken), 81(f) (taking of
deposition), 81(g) (expenses), 81(h) (execution, form, and return
of deposition), 81(i) (use of deposition), and Rule 85(a), (b),
(c), (d), and (e) (objections and irregularities). For Rules
concerned with the timing and frequency of depositions,
supplementation of answers, protective orders, effect of evasive
or incomplete answers or responses, and sanctions and enforcement
action, see Title X.

Rule 76.  Deposition of Expert Witnesses
    (a) Availability.
   (1) Depositions upon consent of parties. The deposition of an
expert witness upon consent of all the parties to a case shall be
governed by Rule 74 rather than this Rule, except that the
provisions of paragraph (e) of this Rule shall apply to such a
deposition.
   (2) Other depositions. The taking of a deposition of an expert
witness without consent of all the parties to a case is an
extraordinary method of discovery. Such a deposition may be taken
only pursuant to an order of the Court.
   (b) Scope of deposition. The deposition of an expert witness
under paragraph (a)(2) of this Rule shall be limited to (1) the
knowledge, skill, experience, training, or education that
qualifies the witness to testify as an expert in respect of the
issue or issues in dispute, (2) the opinion of the witness in
respect of which the witness' expert testimony is relevant to the
issue or issues in dispute, (3) the facts or data that underlie
that opinion, and (4) the witness' analysis, showing how the
witness proceeded from the facts or data to draw the conclusion
that represents the opinion of the witness.
   (c) When deposition may be taken. A deposition of an expert
witness under paragraph (a)(2) of this Rule may be taken only
after a notice of trial has been issued or after a case has been
assigned to a Judge or Special Trial Judge of the Court, and
within the time for completion of discovery under Rule 70(a)(2).
The taking of such a deposition ordinarily will not be regarded
as a ground for continuance.
   (d) Procedure.
   (1) In general. A party desiring to depose an expert witness
under paragraph (a)(2) of this Rule shall file a written motion
and shall set forth therein the matters specified in subparagraph
(2). The Court shall take such action on the motion as it deems
appropriate.
   (2) Content of motion. Any motion seeking an order authorizing
the deposition of an expert witness under paragraph (a)(2) of
this Rule shall set forth the following:
   (A) the name and address of the witness to be examined;
   (B) a statement describing any books, papers, documents, or
tangible things to be produced at the deposition of the witness
to be examined;
   (C) a statement of issues in controversy to which the expected
testimony of the expert witness, or the document or thing,
relates, and the reasons for deposing the witness;
   (D) the time and place proposed for the deposition;
   (E) the officer before whom the deposition is to be taken;
   (F) any provision desired with respect to the payment of the
costs, expenses, fees, and charges relating to the deposition
(see paragraph (g)); and
   (G) if the movant proposes to videotape the deposition, then a
statement to that effect and the name and address of the
videotape operator and the operator's employer. (The videotape
operator and the officer before whom the deposition is to be
taken may be the same person.)
   If the movant proposes to take the deposition of the expert
witness on written questions, then the movant shall annex to the
motion a copy of the questions to be propounded. The movant shall
also show that prior notice of the motion has been given to the
expert witness whose deposition is sought and to each other
party, or counsel for each other party, and shall state the
position of each of these persons with respect to the motion, in
accordance with Rule 50(a).
   (3) Disposition of motion. Any objection or other response to
the motion for order to depose an expert witness under paragraph
(a)(2) of this Rule shall be filed with the Court (along with a
certificate of service) within 15 days after service of the
motion. A hearing on the motion will be held only if directed by
the Court. If the Court approves the taking of a deposition, then
it will issue an order which will include in its terms the name
of the person to be examined, the time and place of the
deposition, and the officer before whom it is to be taken. If the
deposition is to be videotaped, then the Court's order will so
state.
   (e) Use of Deposition for Other Than Discovery Purposes.
   (1) Use as expert witness report. Upon written motion by the
proponent of the expert witness and in appropriate cases, the
Court may order that the deposition transcript serve as the
expert witness report required by Rule 143(f)(1). Unless the
Court shall determine otherwise for good cause shown, the taking
of a deposition of an expert witness will not serve to extend the
date under Rule 143(f)(1) by which a party is required to furnish
to each other party and to submit to the Court a copy of all
expert witness reports prepared pursuant to that Rule.
   (2) Other use. Any other use of a deposition of an expert
witness shall be governed by the provisions of Rule 81(i).
   (f) Action by the Court sua sponte. In the exercise of its
discretion the Court may on its own motion order the taking of a
deposition of an expert witness and may in its order allocate the
cost therefor as it deems appropriate.
   (g) Expenses.
   (1) In general. By stipulation among the parties and the
expert witness to be deposed, or on order of the Court, provision
may be made for any costs, expenses, fees, or charges relating to
the deposition. If there is not such a stipulation or order, then
the costs, expenses, fees, and charges relating to the deposition
shall be borne by the parties as set forth in subparagraph (2).
   (2) Allocation of costs, etc. The party taking the deposition
shall pay the following costs, expenses, fees, and charges:
   (A) a reasonable fee for the expert witness, with regard to
the usual and customary charge of the witness, for the time spent
in preparing for and attending the deposition;
   (B) reasonable charges of the expert witness for models,
samples, or other like matters that may be required in the
deposition of the witness;
   (C) such amounts as are allowable under Rule 148(a) for
transportation and subsistence for the expert witness;
   (D) any charges of the officer presiding at or recording the
deposition (other than for copies of the deposition transcript);
   (E) any expenses involved in providing a place for the
deposition; and
   (F) the cost for the original of the deposition transcript as
well as for any copies thereof that the party taking the
deposition might order.
   The other parties and the expert witness shall pay the cost
for any copies of the deposition transcript that they might
order.
   (3) Failure to attend. If the party authorized to take the
deposition of the expert witness fails to attend or to proceed
therewith, then the Court may order that party to pay the witness
such fees, charges, and expenses that the witness would otherwise
be entitled to under subparagraph (2) and to pay any other party
such expenses, including attorney's fees, that the Court deems
reasonable under the circumstances.
   (h) Other applicable rules. The deposition of an expert
witness under this Rule shall be governed by the provisions of
the following Rules with respect to the matters to which they
apply: Rule 74(d) (transcript) and 74(e) (depositions upon
written questions); Rule 81(c) (designation of person to
testify), 81(e) (person before whom deposition taken), 81(f)
(taking of deposition), 81(h) (execution, form, and return of
deposition), and 81(j) (videotape depositions); and Rule 85
(objections, errors, and irregularities).  For Rules concerned
with the timing and frequency of depositions, supplementation of
answers, protective orders, effect of evasive or incomplete
answers or responses, and sanctions and enforcement action, see
Title X.

Rule 77--79.  [Reserved]

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