- 8 -
they paid to petitioner. In response, petitioner stated that
respondent failed to identify "by statute and regulation any
activity for which petitioner would receive income from 'fees',
or a statute and regulation identifying any amount in question as
a 'fee'."
(7) In requests 34 through 39, respondent attached copies of
canceled checks and asserted that petitioner received these
checks from clients of his tax return preparation and tax
counseling business in exchange for services rendered. In
requests 40 and 41, respondent attached a copy of a receipt given
by petitioner to John Morales and asserted that the receipt was
given by petitioner in exchange for payment by Mr. Morales for
petitioner's income tax services. Petitioner's response to each
of these requests was essentially the same: "petitioner objects
to respondent's exhibit * * * as inconclusive of income, and
respondent fails to identify as income under any statute and
regulation, and is not identified as any income item by tax class
or other identification."
(8) In request 18, respondent asserted that, when
interviewed by Internal Revenue Service (IRS) special agents
concerning his income tax liabilities for the years in issue,
petitioner told the agents that he was not in business, and did
not own any interest in a business. In response, petitioner
stated that he lacked "knowledge of any 'effectively connected
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