- 8 -
The Civil Investigation
At the conclusion of the criminal investigation, Revenue
Agent Stufflebeam became responsible for resolving petitioners’
civil tax liabilities for the audit years. In the process of
resolving those liabilities he received both written and oral
communications from Mr. Barker. Mr. Barker did not file with him
any claim for an NOL carryback from 1992.
By a letter dated May 1, 1996 (the May 1 letter), sent by
Mr. Barker to the Ogden Service Center, Mr. Barker advised the
IRS that he was preparing income tax returns for petitioners for
their 1991 through 1994 tax years, but that those returns were
“on hold to await the outcome of settlement with the Internal
Revenue Service out of the Reno area.” He states: “To finalize
these years there was required a settlement on the exact
inventory, and other critical capitalized amounts to present an
accurate return.”
On June 18, 1996, Revenue Agent Stufflebeam memorialized in
handwritten notes (the June 18 notes) a phone conversation that
had taken place that day between himself and Mr. Barker. As
memorialized in the June 18 notes: Mr. Barker stated that, based
on the cost of goods sold used in the criminal case against
petitioner, petitioners would have NOL carrybacks in later years.
Revenue Agent Stufflebeam told Mr. Barker that he could complete
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011