- 7 - the same amounts and characterizations of gross income determined in the notices of deficiency sent to petitioners. In their answer, petitioners claim that they do not have the necessary records to verify the request for admissions and state that they assume the requested admissions are accurate. We deem petitioners’ response a concession as to the amounts and characterizations of gross income determined in the notices of deficiency for the years in issue. See Rule 90(c). The remaining issue for purposes of respondent’s motion is whether petitioners incurred a loss in 1987 which they may use to offset their gross income for the years in issue. Petitioners argue that they may offset their gross income with a carryforward loss that they claim was caused by respondent’s illegal and unconstitutional seizure activities against assets of IEEI, the Alternative Energy entities, and Mr. Tonn in March of 1987.4 4Petitioners present lengthy arguments in support of their contention that respondent’s agents engaged in illegal and unconstitutional collection activities. We generally do not address such arguments. See, e.g., Kerr v. Commissioner, 5 B.T.A. 1073, 1095 (1927). We note that petitioners have pursued their claims that respondent’s agents engaged in illegal and unconstitutional collection activities in District Court, but those claims have been unsuccessful. See, e.g., Tonn v. United States, 210 F.3d 379 (8th Cir. 2000); Tonn v. United States, 78 AFTR 2d 96-5631 (D. Minn. 1996), affd. without published opinion 108 F.3d 1382 (8th Cir. 1997); Tonn v. United States, 847 F. Supp. 711 (D. Minn. 1993), affd. sub nom. Tonn v. Forsberg, 27 F.3d 1356 (8th Cir. 1994). Petitioners also contend that they did not receive notice of the alleged seizure in March of 1987, and, thus, the property seized must be returned. This argument does not bear on the issue of whether petitioners are entitled to (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011