- 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 completePage: 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