Gerald L. and Jessica P. Frey - Page 15

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                              and that “he is authorized to send such                 
                              notice.” * * * Therefore, after                         
                              receiving those Deficiency Notices from                 
                              Gwen Krauss * * * we wrote her * * *                    
                              asking her to supply us with her                        
                              delegation of authority from the                        
                              Secretary to send out such Notices                      
                              (pursuant to Code Sections 7701(11)(B) &                
                              7701(12)(A)(i)), and she never answered                 
                              our letter.  We have since received                     
                              proof that Gwen Krauss has no such                      
                              delegation of authority.  Therefore, the                
                              Deficiency Notices we received from her                 
                              were invalid - and we are barred from                   
                              petitioning Tax Court from invalid                      
                              Deficiency Notices.  Beside, we are not                 
                              challenging the “amount” of the alleged                 
                              “deficiency”:  we are challenging its                   
                              “existence,” as a matter of law.                        
                              However, since Tax Court is not a court                 
                              of law (See Freytag v. C.I.R., 11 S. Ct.                
                              2631 * * * the Tax Court would have no                  
                              jurisdiction to consider the legal                      
                              question of whether or not the Internal                 
                              Revenue Code establishes an income tax                  
                              “liability” as a matter of law.                         
                  *       *       *       *       *       *       *                   
                    7)        We claim there is no statute requiring                  
                              us “to pay” the income taxes at issue.                  
                    Another relevant issue is “Whether or not there is                
               a statute requiring us ‘to pay’ the income taxes at                    
               issue?”  Code Section 6321 provides that only when one                 
               fails “to pay any tax” can there be “a lien in favor of                
               the United States.”  Therefore, before there can be a                  
               “lien in favor of the United States” there must be a                   
               statutory requirement “to pay” the income taxes at                     
               issue.  The Index of the Code we will bring to our CDP                 
               hearing contains a Section entitled “Payment of tax.”                  
               (Attached as Exhibit H)  It contains over 60 entries.                  
               * * * however, there is no entry we can find for                       
               “income taxes.”  It is therefore our belief that there                 
               is no law requiring us “to pay” income taxes, and this                 
               certainly is a “relevant issue” that is appropriately                  
               raised at a CDP hearing - since, if the appeals officer                
               can not identify any statute that requires us “to pay”                 





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