Basil Nicholas Stephanatos - Page 4

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               When petitioner was audited by the Internal Revenue Service            
          (IRS), he refused to present any documents substantiating the               
          amount or purpose of the deductions claimed on his tax returns.             
          Instead, he commenced a course of correspondence that included              
          frivolous arguments and spurious threats.  For example, in a                
          letter dated September 18, 2002, which he attached to the                   
          petition in this case, petitioner accused the IRS of fraudulent             
          and criminal conduct and made various demands.  Petitioner also             
          argued that he was not involved in “revenue taxable activities”;            
          that “Taxes on personal property are direct taxes, nontaxable by            
          the federal government unless apportioned according to the census           
          of the states”; and that “Compensation for Labor and the exercise           
          of the Right to Labor are personal property”.                               
               In the notice of deficiency, respondent disallowed the                 
          various deductions claimed by petitioner and allowed the standard           
          deduction of $4,300 for 1999 and $4,400 for 2000.  Petitioner did           
          not present prior to or during trial proof that he had paid                 
          deductible items exceeding the respective amounts of the standard           
          deduction for each year in issue.                                           
               During the course of this proceeding, petitioner filed                 
          numerous frivolous motions.  He did not comply with the Court’s             
          Rules regarding discovery or stipulation but instead submitted              
          his version of a purported stipulation that merely set forth his            
          frivolous contentions.  He refused to meet with respondent’s                






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