- 6 -
(b) The notice of deficiency is arbitrary and
erroneous, and is not based on any ligaments of fact.
Moreover, the notice of deficiency amounts to a naked
assessment without foundation whatsoever.
B. Facts
Documents in evidence establish the following: On
October 27, 1997, Pat Grimes, a Revenue Agent employed by
respondent, commenced an examination (the examination) of the
1994 tax return. On that date, Revenue Agent Grimes sent to
petitioner two letters and a request for documents. The first
letter informs petitioner that the 1994 tax return has been
assigned to Revenue Agent Grimes for examination. It also states
that she needs additional information to verify certain items on
that return. The request for documents (document request)
contains a specific and comprehensive list of documents,
including documents substantiating the following items with
respect to the 1994 tax year:
1. Year end wages accrued but not paid to shareholder
2. Supplies
3. Professional Services
4. Rent expense
5. Automobile expenses and depreciation
Travel expenses:
a. Meal expenses
b. Hotel expenses
c. Airplane tickets
The second letter informs petitioner that the limitation period
for the assessing of additional tax for the 1994 tax year will
expire soon, encloses a Form 872, Consent to Extend the Time to
Assess Tax (Form 872), and requests that petitioner sign and
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011