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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
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