Robert Lee Jr. - Page 6




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                    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.                    







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