Martin H. Tonn and Lorraine A. Tonn - Page 7




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          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...)           





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