- 10 - explanation of the purpose of petitioner’s payment of $27,000 to Pekas. Petitioner sent a letter, received by Hughs on April 1, 2002, in which he asked her to answer 28 questions, including whether she had proof that all administrative steps required by the Internal Revenue Code had been followed, whether statutory authority for the audit existed, which Internal Revenue Code section allowed her to solicit information, whether she could explain the relevance of the material she sought, and whether compliance with the audit was voluntary or mandatory. On April 2, 2002, Hughs requested additional documents from petitioners concerning their deduction of legal, travel and employee business expenses and job search costs for 1999 and 2000. Petitioner postponed a meeting that Hughs had scheduled. On April 30, 2002, petitioner asked that the audit of petitioners’ 2000 income tax return be reassigned to someone other than Hughs because petitioners believed that Hughs had lost her objectivity. 3. Examination of Petitioners’ 2001 Tax Return Hughs sent a letter dated June 4, 2002, to petitioners and a second letter to Susan Fairey concerning the audit of petitioners’ 2001 income tax return. In those letters, Hughs requested records of petitioner’s Schedule C income and expenses, and petitioners’ employee business expenses and itemized deductions. Hughs sent copies of a letter to each petitionerPage: 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