Jorge V. and Carol A. Geaga - Page 4

                                        - 4 -                                         

               the IRS decides to contest the loss deduction I have                   
               claimed, let this document serve as proof that I waive                 
               my rights to an appeal before the IRS and directly                     
               request a tax deficiency statement so I can file for a                 
               hearing before the U.S. Tax Court.  Please furnish                     
               appropriate citations of sections of the U.S. Tax Code                 
               which are used to justify denial [of] the deductions I                 
               have claimed.                                                          
               On February 12, 1997, a Problem Resolution Specialist for              
          the IRS sent to petitioner a letter containing the following                
          paragraphs:                                                                 
                    This is in response to your letter to me dated                    
               January 21, 1997, regarding your original inquiry on                   
               October 28, 1996.  You stated that you believe that the                
               Internal Revenue Service can overturn the decisions                    
               made by the United States Tax Court on your 1990 and                   
               1991 cases.  Unfortunately, that is not true.  A                       
               taxpayer's purpose in filing a petition with Tax Court                 
               is to appeal an Internal Revenue Service determination                 
               to a higher authority.  We must accept the decision of                 
               the Tax Court whether it is in our favor or in the                     
               taxpayer's favor.  The taxpayer, however, can appeal                   
               the decision to a higher court if he has not signed the                
               Decision Document.  The Decision Document that you                     
               signed is legally binding, and it cannot be retracted.                 
                    Although we could not overturn the Tax Court                      
               decision, you have been allowed to take the $99,000                    
               deduction from your 1995 taxes.  You claimed that                      
               deduction as a business loss on your 1995 tax return,                  
               and it was allowed without being audited.  The loss                    
               offset most of your earnings for that year and resulted                
               in no tax being due.  The credit that was created by                   
               your withholding, $4,764, was applied to the balance on                
               your 1991 and 1992 taxes, $2,082.53 for 1991 and                       
               $2,681.47 for 1992.  You are making monthly payments on                
               the balance still owing for 1992, but I must inform you                
               that interest will continue to accrue until the account                
               is paid in full.                                                       
          On June 9, 1997, the statutory notice for 1995 was sent to                  
          petitioners.  The $99,000 deduction was disallowed, and a small             





Page:  Previous  1  2  3  4  5  6  7  8  9  Next

Last modified: May 25, 2011