- 8 - deficiency. Petitioner’s discovery requests addressed constitutional and legal issues that have been settled in the Commissioner’s favor or asked for information outside the scope of discovery. For example, petitioner’s interrogatories contain the following question: “Is there an IRS Code Section that would establish a liability for an income tax?” Among her document requests is the following: “Please provide me with (or identify) the Code Section that requires me to keep books and records for income tax purposes.” Petitioner’s Acknowledgment of Rental Income On April 19, 1996, we filed petitioner’s motion to dismiss, which we denied. In the motion to dismiss, petitioner acknowledges her receipt of rental income. She claims: “SINCE ALL OF THE ‘INCOME’ AT ISSUE WAS DERIVED FROM RENT, HOW CAN POLLOCK V. FARMERS LOAN AND TRUST CO. * * * NOT BE RELEVANT TO THE FACTS IN THIS CASE?” She concedes: “all of the ‘income’ at issue is from ‘rent’ or ‘income’ from real estate”. She argues that respondent is seeking to impose an income tax “on the rent Petitioner derives from real estate”. She argues that respondent “[is] attempt[ing] to put an income tax on Petitioner’s rental income”. Accompanying the motion for sanctions is an Exhibit G, a letter from petitioner to respondent’s counsel, dated April 12, 1996, in which petitioner acknowledges her ownership of rentalPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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