- 6 -
At the meeting, respondent’s examiner displayed her badge to
establish her authority to conduct the examination and cited
section 7602 to establish the statutory authority for the
examination. Respondent’s examiner advised petitioner both at
the meeting and in a letter dated February 10, 1999, that: (1)
Statutes are enforceable even if there are no regulations
interpreting them, and (2) section 1.861-8(f), Income Tax Regs.,
is irrelevant to petitioner’s returns and to the examination.
Petitioner did not produce his records in response to
respondent’s letter of February 10, 1999. Petitioner’s conduct
constituted refusal to cooperate with respondent’s examination.
On April 24, 1999, respondent issued a formal summons for
petitioner’s records. On June 3, 1999, petitioner sent a letter
to respondent making frivolous tax protester arguments by
selectively citing portions of statutes and court decisions out
of context. Petitioner signed his letter “Without prejudice UCC
10207”. The letter evidences and confirms petitioner’s continued
refusal to cooperate with respondent’s examination.
On June 12, 1999, petitioner attended a meeting with
respondent’s examining agents. Petitioner again failed to
produce records in response to the summons and continued to make
frivolous demands.
Because petitioner did not produce records to support his
return positions, respondent elected to use an indirect method to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011