Kenneth A. Sapp - Page 25

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          settlement officer to fail to consider collection alternatives.             
          See, e.g., Picchiottino v. Commissioner, T.C. Memo. 2004-231;               
          Newstat v. Commissioner, T.C. Memo. 2004-208; Moorhous v.                   
          Commissioner, T.C. Memo. 2003-183.                                          
          "Tax Protester" References                                                  
               In the absentee letter, petitioner complained that Appeals             
          was aware that respondent maintained records designating                    
          petitioner as a "tax protester" and had taken no action to have             
          this designation expunged, in violation of section 3707 of the              
          RRA 1998, 112 Stat. 778.  The 2004 supplemental determination               
          concedes that certain IRS documents so identified petitioner but            
          treats the matter as of no consequence because the documents                
          "were from an earlier period".                                              
               Section 3707(a) of the RRA 1998 provides that officers and             
          employees of the IRS shall not designate taxpayers as "illegal              
          tax protesters (or any similar designation)" and in the case of             
          any such designation made before the enactment of the RRA 1998:             
               Sec. 3707.  Illegal Tax Protester Designation.                         
                         *    *    *     *     *     *     *                          
                    (A) shall remove such designation from the individual             
                    master file; and                                                  
                    (B) shall disregard any such designation not                      
                    located in the individual master file.                            
               None of the documents that identified petitioner as a tax              
          protester are in evidence.  While the designation apparently                
          appears in some of respondent's documents concerning petitioner,            
          section 3707(a) specifically contemplates that preexisting tax              



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