Anthony M. Davich - Page 9




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               I have reviewed your administrative file and your                      
               reasons for disagreeing with the Service Center                        
               Director’s proposed enforcement action.  It is my                      
               determination that your reasons for disagreeing with                   
               the proposed enforcement action are frivolous.                         
               The Courts have consistently and repeatedly rejected                   
               the arguments you have expressed and, in some cases,                   
               they have imposed sanctions.  In Pierson v.                            
               Commissioner, * * * [115 T.C. 576 (2000)], the Court                   
               issued fair warning of penalties under section 6673 to                 
               all those taxpayers who, in the future, institute or                   
               maintain a lien or levy action primarily for delay or                  
               whose position in such a proceeding is frivolous or                    
               groundless.  In an opinion just issued by the Court in                 
               Regina Davis, * * * [T.C. Memo. 2001-87], the Court                    
               imposed a $4,000.00 penalty because the taxpayer was                   
               making frivolous arguments.                                            
               By letter dated June 18, 2001, the Appeals officer sent to             
          petitioner copies of literal transcripts from respondent’s                  
          individual master file (IMF) at the Martinsburg, West Virginia,             
          Computing Center of petitioner’s accounts for the taxable years             
          1997 and 1998.4                                                             
               On July 30, 2001, petitioner attended an administrative                
          hearing in Las Vegas, Nevada, conducted by the Appeals officer.             
          Prior to the hearing, the Appeals officer reviewed transcripts              
          pertaining to petitioner’s accounts for the taxable years 1997              
          and 1998.                                                                   
               During the hearing, petitioner requested that the Appeals              
          officer identify the statutory provisions establishing                      
          petitioner’s liability for Federal income tax and provide                   

               4  A literal transcript is a transcript in “plain English”             
          with a minimum amount of “computerese”.                                     





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