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substantiated certain cost of goods sold and Schedule C expenses;
and (5) petitioners failed to report earned income credit
recapture. The addition to tax at issue is attributable to
petitioners' late filing of their 1990 Federal income tax return,
and respondent asserted an accuracy-related penalty under section
6662(a), for tax years 1990 and 1991.
Petitioners invoked the jurisdiction of this Court by filing
a timely petition for redetermination. In the petition, the sole
ground for petitioners' disagreement with the adjustments in the
notice of deficiency was that their "TAX RECORDS WERE NOT
AVAILABLE WHEN REQUESTED". After filing an answer to the
petition, respondent attempted to schedule a conference for the
purpose of discussing the issues in the case. On March 17, 1995,
in accordance with Branerton Corp. v. Commissioner, 61 T.C. 691
(1974), respondent sent a letter informally requesting
petitioners to provide copies of all documents relevant to the
issues in the case by April 20, 1995. The letter was sent by
certified mail, return receipt requested, to three different
addresses: petitioners' residence, petitioners' business, and in
care of their representative, A.E. Rheinheimer, Enrolled Agent.
Respondent received the return receipts indicating that
petitioner, Tonja Carkhuff, signed for the letter addressed to
the business address, on March 18, 1995, and for the letter
addressed to the residence, on March 30, 1995. Furthermore,
respondent received a return receipt indicating that A.E.
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