- 6 - Lastly, although you were vague about your theory of the case during our last meeting, it is my understanding that you are planning to argue to the Tax Court that the money you received for your retirement and the work you did during the years at issue, is not taxable. Please be advised that should you advance such frivolous arguments before the Tax Court, I will ask the Tax Court to impose a sanction against you. The authority for such a sanction is at I.R.C. sec. 6673, and allows the Tax Court to impose a penalty of up to $25,000.00. Petitioner’s response to the above letter was erroneously dated May 22, 2001, and stated: I am writing in response to your letter of September 28, 2001. It is clear from the tone of your letter that you do not comprehend the issues of this case. Either that or I am left with no alternative but to treat your letter as an idle and improper threat against me and my property. If it is such a threat, I don’t think I need to remind you of the consequences of 26 U.S.C. sec. 7214 which provide criminal sanctions for such threats and intimidation under color of law. This is a case of unreported income. I have denied receipt of that income. Under the current state of the law you have the burden of proving receipt of that income and that the income was from a taxable source. United States v. Janis, 428 U.S. 433, 441-442 (1976); Portillo v. Commissioner, 932 F.2d 1128 (5th Cir., 1991); Weimerskirch v. Commissioner, 596 F.2d 358, 360 (9th Cir., 1979); Gerardo v. C.I.R., 552 F.2d 549, 552 (3rd Cir., 1977). Given the tone of your letter, I cannot sign the Stipulation of Facts as proposed. I am going to have to go over them thoroughly and amend them. In the interim, you must do the following. Produce all documents you intend to use at trial to prove that I received the income alleged in the Notices of Deficiency and identify all witnesses you intend to call to introduce and authenticate those documents.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011