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provide the examination officer with books, records, or any other
information, and he attempted to prevent the examination officer
from obtaining information from third parties. During the
examination, petitioner asserted his Fifth Amendment privilege
against self-incrimination.
The examination officer reconstructed petitioner’s insurance
business income using the bank deposits method. The examination
officer allowed petitioner a deduction for estimated insurance
business expenses equal to 54.77 percent of his commissions based
on the Statistics of Labor Bulletin, Sole Proprietorship Returns,
1994, Table 2.--Nonfarm Sole Proprietorships: Income Statements,
by Selected Groups: Insurance agents and brokers (statistics for
insurance agents).
On the basis of the examination officer’s reconstruction of
petitioner’s income, respondent determined deficiencies in
petitioner’s Federal income tax for 1991-97 and issued a notice
of deficiency for those years dated May 24, 2000.
On August 21, 2000, petitioner timely filed a petition in
this Court requesting that we “dismiss the NOD [notice of
deficiency] for lack of jurisdiction” on the alleged ground it
“lacks any ligament or tendon of fact, is clearly arbitrary and
capricious and no real determination of deficiency has been made
by any authorized IRS employee.” On September 29, 2000,
petitioner filed an amended petition claiming that respondent’s
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