The Nis Family Trust - Page 43




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            legitimate authority over petitioners’ lives and property, they                            
            should not be required to comply with respondent’s requests for                            
            discovery.  We again point out that petitioners filed returns                              
            reporting items of income and deduction.  Section 7602(a)(1)                               
            establishes the Secretary’s authority to examine a taxpayer’s                              
            books and records to determine the correctness of any return.                              
            Clearly, Ms. Sluyter knew that when she signed the motion.  We                             
            say that because respondent has brought to our attention another                           
            proceeding in which Ms. Sluyter represented tax-protesters                                 
            challenging the Commissioner’s summons enforcement action.  That                           
            proceeding, Zimmerman v. United States, 85 AFTR 2d 2000-1091;                              
            2000-1 USTC par. 50,295 (E.D. Cal. 2000), involves findings and                            
            recommendations submitted by U.S. Magistrate Judge O’Neill to the                          
            Hon. Anthony W. Ishii, Judge, U.S. District Court for the Eastern                          
            District of California.  In his findings and recommendations (all                          
            of which are adverse to the Zimmermans), Magistrate Judge O’Neill                          
            states that, under section 7602(a)(1), to ascertain the                                    
            correctness of any return, the “Secretary is authorized to                                 
            examine ‘any books, papers, records, or other data which may be                            
            relevant or material’ for IRS inquiry”.10  Id.  Moreover,                                  



                  10  In Zimmerman v. United States, 86 AFTR 2d 2000-7027,                             
            2000-2 USTC par. ___  (E.D. Cal. 2000), Judge Ishii imposed                                
            sanctions against Ms. Sluyter under Fed. R. Civ. P. 11 for tax-                            
            protester type arguments that she had advanced in the proceeding                           
            discussed in the text and in a related, subsequent proceeding.                             





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