brad.barnhill@mindspring.com
HomeSite v2.5Last Updated: Thursday, January 21, 1999 10:39:01 PM
C019629 28247-701-70022-8 199844 CP: 22E
Department of the Treasury Date of this notice: NOV. 16, 1998
Internal Revenue Service Taxpayer Identifying Number ###-##-####
PHILADELPHIA, PA 19255 Form: 1040A Tax Period: DEC. 31, 1996
[postnet-barcode] For assistance you may
call us at:
BRAD L. BARNHILL 1-800-829-8815
109 SHALE PLACE
CHARLOTTESVILLE VA 22902-6402094
CALLER ID: 726164
WE CHANGED YOUR ACCOUNT
THE CHANGE(S) BELOW RESULTED FROM AN EXAMINATION OF YOUR TAX RETURN SHOWN
ABOVE. PLEASE SEE YOUR COPY OF THE EXAMINATION REPORT FOR A DETAILED EXPLANATION
OF THE CHANGES.
IF YOU HAVE ANY QUESTIONS, PLEASE CALL US AT THE NUMBER LISTED ABOVE.
STATEMENT OF ACCOUNT
ACCOUNT BALANCE BEFORE EXAMINATION ACTION NONE
INCREASE IN TAX BECAUSE OF EXAMINATION ACTION $##,###.##
CREDIT ADDED -- TAX WITHHELD #,###.##CR
FILING LATE PENALTY ADDED #,###,##
ESTIMATED TAX PENALTY ADDED ###.##
INTEREST CHARGED #,###.##
AMOUNT YOU OWE $#,###.##
PLEASE PAY THE FULL AMOUNT BY DEC. 7, 1998. IF YOU'VE ALREADY PAID YOUR TAX
IN FULL OR ARRANGED FOR AN INSTALLMENT AGREEMENT, PLEASE DISREGARD THIS NOTICE.
IF YOU HAVEN'T PAID, MAIL YOUR CHECK OR MONEY ORDER AND THE TEAR-OFF STUB
FROM THE LAST PAGE OF THIS NOTICE. MAKE YOUR CHECK PAYABLE TO INTERNAL REVENUE
SERVICE AND WRITE YOUR SOCIAL SECURITY NUMBER ON IT. IF YOU CAN'T PAY IN FULL,
PLEASE CALL US TO DISCUSS PAYMENT.
PAGE 1
------------------------------------------------------------------------------------------------
C019629 CP: 22E
PHILADELPHIA SERVICE CENTER 340-52-6122 TAX PERIOD: DEC. 31, 1996
EXPLANATION OF PENALTY AND INTEREST CHARGES
* $#,###.## FILING AND PAYING LATE
WE CHARGED A 5% COMBINED PENALTY OF 4 1/2% FOR FILING LATE AND 1/2% FOR PAYING
LATE BECAUSE, ACCORDING TO OUR RECORDS, YOU FILED YOUR RETURN LATE AND DIDN'T
PAY YOUR TAX BY THE DUE DATE OF YOUR RETURN. THE COMBINED PENALTY IS 5% OF
YOUR UNPAID TAX FOR EACH MONTH OR PART OF A MONTH YOUR RETURN IS LATE, BUT NOT
FOR MORE THAN 5 MONTHS, WHICH WOULD TOTAL 25% (22 1/2% LATE FILING AND 2 1/2%
LATE PAYING).
IN ADDITION TO THE 22 1/2% LATE FILING PENALTY FOR THE FIRST 5 MONTHS YOUR
RETURN IS LATE, WE CONTINUE TO CHARGE THE 1/2% LATE PAYING PENALTY FOR EACH
MONTH OR PART OF A MONTH FOR AS LONG AS YOUR TAX IS UNPAID, BUT NOT FOR MORE
THAN 25%. THEREFORE, THE MAXIMUM PENALTY WE CAN CHARGE IS 47 1/2% (22 1/2%
LATE FILING PLUS 25% LATE PAYING).
IF YOU DIDN'T FILE YOUR RETURN WITHIN 60 DAYS OF THE DUE DATE, THE MINIMUM
PENALTY IS $100 OR 100% OF THE BALANCE OF TAX DUE ON YOUR TAX RETURN, WHICHEVER
IS SMALLER. IF YOU THINK WE SHOULD REMOVE OR REDUCE THIS PENALTY, SEE "REMOVAL
OF PENALTY."
* $###.## UNDERPAYMENT OR LATE PAYMENT OF ESTIMATED TAX.
WE CHARGED YOU A PENALTY BECAUSE, ACCORDING TO OUR RECORDS, YOU DIDN'T ESTIMATE
YOUR TAX AND PAY THE CORRECT AMOUNT OF TAX DUE.
INDIVIDUALS, ESTATES, AND CERTAIN TRUSTS - IF YOU EXPECT TO OWE TAX OF $500 OR
MORE FOR THE TAX YEAR, YOU MUST PREPAY THE TAX BY HAVING TAX WITHHELD OR BY
MAKING ESTIMATED TAX PAYMENTS. WE CHARGE A PENALTY WHEN THE TOTAL TAX YOU PAY
IN DURING THE YEAR DOESN'T MEET THE REQUIREMENTS OF THE LAW. THE REQUIREMENTS
FOR THE LAST SEVERAL TAX YEARS ARE AS FOLLOWS.
FOR 1994 AND LATER, IF YOUR ADJUSTED GROSS INCOME IN THE PRECEDING TAX YEAR IS
MORE THAN $150,000 (MORE THAN $75,000 IF YOUR FILING STATUS IS MARRIED FILING
SEPARATELY), YOUR TOTAL ESTIMATED TAX PAYMENTS MUST EQUAL 110% OF THE TAX SHOWN
ON YOUR RETURN FOR THE PRECEDING YEAR OR 90% OF THE TAX SHOWN ON THE RETURN FOR
THE CURRENT YEAR, WHICHEVER IS LESS.
FOR MORE INFORMATION ON WHEN THE ESTIMATED TAX PENALTY MAY BE REDUCED OR
REMOVED, SEE THE INSTRUCTIONS FOR FORM 2210 FOR YOUR TAX YEAR.
THE INTEREST RATES ON UNDERPAYMENT AND OVERPAYMENT OF TAXES ARE AS FOLLOWS:
PERIODS PERCENTAGE RATES
-----------------------------------------------------------------------------------
UNDERPAYMENT OVERPAYMENT
JULY 1, 1995 THROUGH MARCH 31, 1996....................... 9 8
APRIL 2, 1996 THROUGH JUNE 30, 1996....................... 8 7
JULY 1, 1996 THROUGH MARCH 31, 1998....................... 9 8
BEGINNING APRIL 1, 1998................................... 8 7
-----------------------------------------------------------------------------------
BEGINNING JANUARY 1, 1987, THE INTEREST RATE WE PAY ON YOUR OVERPAYMENT OF TAXES IS
ONE PERCENT LESS THAN THE RATE OF INTEREST WE CHARGE ON UNDERPAYMENT OF TAXES.
THE LAW REQUIRES US TO REDETERMINE THESE INTEREST RATES QUARTERLY.
WE COMPOUND INTEREST DAILY EXCEPT ON ESTIMATED TAXES FOR INDIVIDUALS OR CORPORATIONS.
PAGE 2
------------------------------------------------------------------------------------------------
C019629 CP: 22E
PHILADELPHIA SERVICE CENTER 340-52-6122 TAX PERIOD: DEC. 31, 1996
WE CHARGE A SPECIAL INTEREST RATE OF 120 PERCENT OF THE UNDERPAYMENT RATE IF:
- THE RETURN, NOT INCLUDING EXTENTIONS, IS DUE BEFORE JANUARY 1, 1990,
- THE UNDERPAYMENT IS MORE THAN $1,000, AND
- THE UNDERPAYMENT CAME FROM A TAX-MOTIVATED TRANSACTION.
WE CHARGE INTEREST ON PENALTIES FOR LATE FILING, OVER OR UNDERSTATING VALUATIONS,
AND SUBSTANTIALLY UNDERSTATING THE TAX YOU OWE. ALSO, WE CHARGE INTEREST ON FRAUD
AND NEGLIGENCE PENALTIES IF THE TAX RETURNS, INCLUDING EXTENTIONS, ARE DUE AFTER
DECEMBER 31, 1988.
WE WILL CONTINUE TO CHARGE INTEREST UNTIL YOU PAY THE AMOUNT YOU OWE IN FULL.
* $#,###.## INTEREST
WE CHARGED INTEREST BECAUSE, ACCORDING TO OUR RECORDS, YOU DIDN'T PAY YOUR TAX ON
TIME. WE FIGURE INTEREST FROM THE DUE DATE OF YOUR RETURN (REGARDLESS OF
EXTENSIONS) TO THE DATE WE RECEIVE YOUR FULL PAYMENT OR THE DATE OF THIS NOTICE.
* ADDITIONAL INTEREST CHARGES
INTEREST PAID
BEGINNING WITH TAX YEAR 1991, YOU CAN NO LONGER DEDUCT INTEREST YOU PAID TO THE
INTERNAL REVENUE SERVICE AS AN ITEMIZED DEDUCTION ON YOUR FORM 1040, SCHEDULE A.
INTEREST REDUCED
IF WE REDUCE INTEREST THAT YOU PREVIOUSLY REPORTED AS A DEDUCTION ON YOUR TAX
RETURN, YOU MUST REPORT THIS REDUCTION OF INTEREST AS INCOME ON YOUR TAX RETURN
FOR THE YEAR WE REDUCE IT.
INTEREST REMOVED - ERRONEOUS REFUND
THE LAW REQUIRES US TO REMOVE INTEREST UP TO THE DATE WE REQUEST YOU TO REPAY
THE ERRONEOUS REFUND WHEN:
- YOUR DIDN'T CAUSE THE ERRONEOUS REFUND IN ANY WAY, AND
- THE REFUND DOESN'T EXCEED %50,000.
IRS MAY REMOVE OR REDUCE INTEREST ON OTHER ERRONEOUS REFUNDS BASED ON THE
FACTS AND CIRCUMSTANCES INVOLVED IN EACH CASE.
NETTED INTEREST
EFFECTIVE JANUARY 1, 1987, THE CURRENT INTEREST RATE WE PAY WHEN YOU OVER PAY YOUR
TAX IS 1% LESS THAN THE RATE OF INTEREST WE CHARGE WHEN YOU UNDERPAY YOU TAX.
HOWEVER, IF WE REFUND AN OVERPAYMENT TO YOU WITH INTEREST AND WE HAVE TO INCREASE
YOUR AX AT A LATER DATE, WE GIVE SPECIAL CONSIDERATION TO THE INTEREST ON THESE
ACCOUNTS.
ON THE TAX INCREASE AFTER THE REFUND, WE'LL CHARGE THE LOWER REFUND RATE OF
INTEREST ON THE TAX INSTEAD OF THE HIGHER UNDERPAYMENT RATE OF INTEREST. WE'LL
CHARGE THE LOWER INTEREST RATE ON THE NEW TAX (UP TO THE AMOUNT OF THE REFUND)
FOR THE SAME PERIOD OF TIME WE PAID INTEREST ON THE OVERPAYMENT.
REMOVAL OF PENALTIES - REASONABLE CAUSE
THE LAW LETS US REMOVE OR REDUCE THE PENALTIES WE EXPLAIN IN THIS NOTICE IF YOU
HAVE AN ACCEPTABLE REASON. IF YOU BELIEVE YOU HAVE AN ACCEPTABLE REASON, YOU BY
SEND US A SIGNED STATEMENT EXPLAINING YOUR REASON. WE WILL REVIEW IT AND LET YOU
KNOW IF WE ACCEPT YOUR EXPLANATION AS REASONABLE CAUSE TO REMOVE OR REDUCE YOUR
PENALTY. THIS PROCEDURE DOESN'T APPLY TO INTEREST AND, IN SOME CASES, WE MAY ASK
YOU TO PAY THE TAX IN FULL BEFORE WE REDUCE OR REMOVE THE PENALTY FOR PAYING LATE.
PAGE 3
------------------------------------------------------------------------------------------------
C019629 CP: 22E
PHILADELPHIA SERVICE CENTER 340-52-6122 TAX PERIOD: DEC. 31, 1996
ERRONEOUS ADVICE FROM IRS
WE WILL ALSO REMOVE YOUR PENALTY IF:
-YOU WROTE TO US AND ASKED FOR ADVICE ON A SPECIFIC ISSUE,
-YOU GAVE IRS COMPLETE AND ACCURATE INFORMATION,
-IRS WROTE BACK TO YOU AND GAVE YOU A SPECIFIC COURSE OF
ACTION TO TAKE OR EXPLAINED WHAT ACTIONS NOT TO TAKE,
-YOU FOLLOWED OUR WRITTEN ADVICE IN THE MANNER WE OUTLINED, AND
-YOU WERE PENALIZED FOR THE WRITTEN ADVICE WE GAVE YOU.
TO HAVE THE PENALTY REMOVED BECAUSE OF ERRONEOUS WRITTEN ADVICE FROM IRS,
YOU SHOULD:
-COMPLETE FOR 843, CLAIM FOR REFUND AND REQUEST FOR ABATEMENT,
-REQUEST THAT IRS REMOVE THE PENALTY, AND
-SEND FORM 843 TO THE IRS SERVICE CENTER WHERE YOU FILED YOUR
RETURN FOR THE YEAR YOU RELIED ON ERRONEOUS ADVICE FROM THE IRS.
THE THREE DOCUMENTS YOU MUST ATTACH TO YOUR FORM 843 ARE:
-A COPY OF YOUR ORIGINAL REQUEST FOR ADVICE FROM IRS,
-A COPY OF THE ERRONEOUS WRITTEN ADVICE FROM IRS, AND
-A NOTICE (IF ANY) SHOWING THE PENALTY WE CHARGED THAT
YOU NOW WISH US TO REMOVE.
------------------------------------------------------------------------------------------------
RETURN THIS PART TO US WITH YOUR CHECK OR INQUIRY
YOUR TELEPHONE NUMBER BEST TIME TO CALL
( ) -
AMOUNT YOU OWE......................$#,###,.##
55,658 52,278 383 LESS PAYMENTS NOT INCLUDED. $__________________
PAY ADJUSTED AMOUNT........ $__________________
###-##-#### JX 0000 30 0 9612 670 00000######
[postnet-barcode]
INTERNAL REVENUE SERVICE
22E PHILADELPHIA, PA 19255 BRAD BARNHILL
109 SHALE PL
CHARLOTTESVILLE VA 22902-6402094
199844 01,02,09 28247-701-70022-8
To Whom It May Concern:
This Petition of Protest and Notice of Appeal is timely filed in response to your letter of November 16 of this year, a copy of which is attached, in which you erroneously demand $8,674.89 from me. I hereby refuse this demand, for cause, based upon errors in fact and law. I am not liable for the payment of this unsubstantiated and unattested demand.
Your CP-22E on page 2 paragraph 1 states that a penalty of $1,465.75 is being charged due "filing and paying late". I did not file a return, and did not make an election for the Secretary to file a return pursuant to IRC 6014(a). This penalty is therefore assessed in error.
Page 2 paragraph 4 states that a penalty of $272.63 is being charged due to "underpayment or late payment of estimated tax". If my remuneration is "exempt, excluded, or eliminated for federal income tax purposes" [26 CFR 1.861- 8T(d)(2)(ii)(A)], then it is not includable in "gross income". I therefore have no tax liability, and am not required to estimate a tax pursuant to IRC 6654.
Your information regarding my implied tax liability is in error. I have in my possession a copy of DLN 29210-256-01308-7 from your records which is a fraudulently executed "Substitute For Return" which your district office sent to you and was apparently executed without the authority of any Delegation Order related to the authority to execute returns as proscribed by IRC 6020(b) and 26 CFR 301.6020-1(b).
If you intend to pursue this erroneous demand, pursuant to your Codes and Regulations, the burden of proof is upon you and your agency to substantiate and prove your claim and demand. Pursuant to the Freedom of Information Act, 5 USC 552(a), please forward to me the following documents and information so that I can perfect my appeal. This is my firm promise to pay the fees for duplicating the documents requested below:
(1) All laws, regulations and delegations of authority, applicable to me, providing
your authority for making this demand.
(2) All documents which your agency utilized in calculating the purported
determination of liability, made in this demand.
(3) All forms, rules, regulations and instructions I will need for ultimately
perfecting my appeal, in a Constitutional Article III Court of Law, as a
Citizen of one of the several States of the Union. Also include all
Administrative procedures which must be exhausted prior to initiating such a
suit in a de jure county or state Court at Law. Please do not provide any
instructions which would preclude any ultimate remedy at law, or which
would cause me to waive or surrender any rights guaranteed by the
Constitution of the United States.
(4) Your full legal name (not pseudonym), a Copy of your Identification Card,
Badge and Bond Numbers and your Social Security Number.
As part of this process, the Service has neglected to advise me of my right to an Interview Examination as Publication 556 was not sent to me at the outset of this examination procedure. According to the provisions of 26 CFR 601.105(b)(2)(ii), "During the interview examination, the taxpayer has the right to point out to the examiner any amounts included in the return which are not taxable".
In order to correct the Administrative Record in this matter, please find enclosed copies of two Form 4852 (OMB 1545-0458), with supporting Affidavits, the originals of which I have mailed separately to Roger K. Burgess, the District Director in Richmond, Virginia. You have presumed incorrectly that I have received remuneration which constitutes "gross income", and these statement made under penalty of perjury rebut this presumption.
I will demand due process of law at all times, and your office has willfully skipped over part of the administrative due process to which I am entitled.
Failure to respond to this Notice in 10 days will mean that you have acquiesced to this error and have canceled this demand. The doctrine of estoppel by acquiescence will prevail, barring any future proceedings against me and any in res or in rem proceedings against any property held by me or by third parties in my name. Pending this appeal a stay of execution of collection is in effect.
Sincerely,
/s/ Brad L. Barnhill
Brad L. Barnhill
cc: Roger K. Burgess, District Director, Certified Mail No. Z 520 357 118
I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct.
Executed on this 4th day of December in the Year of our Lord Nineteen Hundred Ninety-Eight.
/s/ Brad L. Barnhill
commonwealth of Virginia )
: affirmed
city of Charlottesville )
I hereby certify that on this 4th day of December in the Year of our Lord Nineteen Hundred Ninety-Eight, the above named CItizen whom I know (or has satisfactorily proved to me), appeared to attest and affirm that he is a Citizen executing the foregoing document.
I, THEREFORE, set forth my hand and seal in affirmation the execution thereof.
/s/ Lori A. PleasantsI hereby certify that I have mailed the foregoing document and enclosures to the Internal Revenue Service, Philadelphia, Pennsylvania, 19255, this 4th day of December in the Year of our Lord Nineteen Hundred Ninety-Eight.
005986 199612
Department of the Treasury Notice Number: CP 504
Internal Revenue Service Notice Date: 12-07-1998
PHILADELPHIA, PA 19255 SSN/EIN: ###-##-####
Caller ID: 726164
[postnet-barcode]
BRAD L. BARNHILL
109 SHALE PLACE
CHARLOTTESVILLE VA 22902-6402094 [SSN-barcode-pluls-101]
Our records indicate you haven't paid the amount you owe. The law requires that you pay your tax at the time you file your return. This is a formal notice of our intent to levy (take) your paycheck, bank account, auto, or other property if we don't receive your payment in full. We can also file a Notice of Federal Tax Lien, if we haven't already done so. Please pay the current balance now. If you've already paid it, can't pay it, or have arranged for an installment agreement, it is important that you call us immediately at the telephone number shown below.
| Account | Summary |
| Form: 1040A | Tax Period: 12-31-1996 |
| Current Balance: | $#,###.## |
| Includes: | |
| Penalty: | $0.00 |
| Interest: | $##.## |
| Last Payment | $0.00 |
| Questions? Call us at 1-800-829-8815 |
See enclosed Publication 594 that explains your rights and responsibilities as a taxpayer |
| Please mail this part with your payment, payable to Internal Revenue Service. |
Notice Number: CP 504 Notice Date: 12-07-1998 |
| write on your check: | Amount Due: |
| 1040A 12-31-1998 ###-##-#### | $#,###.## |
| ######### JX BARN 30 0 9612 670 00000###### | |
|
Internal Revenue Service PHILADELPHIA, PA 19255 |
BRAD BARNHILL 109 SHALE PL CHARLOTTESVILLE VA 22902-6402094 |
Dear Mr. Baugh:
On December 3rd of this year, I sent to you a Petition of Protest and Notice of Appeal in response to your letter of November 16th of this Year, a copy of which is attached, in which you erroneously demand $8,714.91 from me. I hereby refuse this demand, for cause, based upon errors in fact and law. I am not liable for the payment of this unsubstantiated and unattested demand. I DISCHARGE this presumed liability WITHOUT PREJUDICE pursuant to Uniform Commercial Code 3-601.3.
My letter of December 3rd of this year, withy regard to your CP-22E apparently passed your fraudulent demand in the mail. I demand that you review my attested letter of the 3rd of this month, and show me where you disagree.
Your CP-22E on page 2 paragraph 1 states that a penalty of $1,465.75 is being charged due "filing and paying late". I did not file a return. Should you contest this assertion, I demand that you leliver to me a 1040 bearing my signature. I did not make an election for the Secretary to file a return pursuant to IRC 6014(a). Should you contest this assertion, I demand that you deliver to me a letter requesting your assistance to file a return. This penalty is therefore assessed in error.
Your CP-22E on page 2 paragraph 4 states that a penalty of $272.63 is being charged due to "underpayment or late payment of estimated tax". If my remuneration is "exempt, excluded, or eliminated for federal income tax purposes" [26 CFR 1.861- 8T(d)(2)(ii)(A)], then it is not includable in "gross income". I therefore have no tax liability, and am not required to estimate a tax pursuant to IRC 6654.
Your information regarding my implied tax liability is in error. I have in my possession a copy of DLN 29210-256-01308-7 from your records which is a fraudulently executed "Substitute For Return" which your district office sent to you and was apparently executed without the authority of any Delegation Order related to the authority to execute returns as proscribed by IRC 6020(b) and 26 CFR 301.6020-1(b). Therefore all of the interest you have charge in this module is charged in error. If you wish to continue this action, I demand that you deliver to me a delegation of authority to execture a Form 1040 pursuant to the above cited statute and regulation.
I will demand due process of law at all times, and your office has willfully skipped over part of the administrative due process to which I am entitled. My letter of the 3rd of this month delineates my lawful demands.
Failure to respond to this Notice in 10 days will mean that you have acquiesced to this error and have canceled this demand. The doctrine of estoppel by acquiescence will prevail, barring any future proceedings against me and any in res or in rem proceedings against any property held by me or by third parties in my name. Pending this appeal a stay of execution of collection is in effect.
Sincerely,
/s/ Brad L. Barnhill
Brad L. Barnhill
| Internal Revenue Service | Department of the Treasury |
| District Director Virginia-West Virginia District |
400 North Eighth Street, Richmond, Virginia 23240 |
|
Mr. Brad Barnhill 109 Shale Place Charlottesville, Virginia 22902 |
JAN 11 1999 |
Dear Mr. Barnhill:
This is in response to your letter to District Director Roger K. Burgess, dated December 4, 1998. Your letter was referred to my office for response.
Your letter requested an examination interview to discuss the petition of protest and notice of appeal, statement of asseveration of exclusion of remuneration from gross income, and other documents which communicate your position that there is no legal authority by which the Internal Revenue Service (IRS) assers jurisdiction over you, specifically as it relates to Federal income tax issues. It is my decision that such a meeting would be an ineffective use of both your time and the resources of this office.
Mr. Barnhill, I do not wish to debate tax law with you. Statutes and the many court cases which have interpreted and upheld the Internal Revenue Code and its predecessors over the last 70 years provide clear authority for the tax assessment and collection activities which are the responsiblility of our agency to administer. I regret that you do not support the mission with which the IRS is charged, which is to apply the tadx law with integrity and fairness, ensureing that each taxpayer understands responsiblity for compliance.
Ms. Sue Asbury, Examination Division Analyst, has discussed your Freedom of Information Act request with our disclosure office. That office is currently processing your request for copies of documents associated with your Federal income tax records as you instructed.
There remains a balance due on your tax year 1996 Federal tax return of $8,899.35, computed to January 30, 1999. If you are unable to pay the amount owed, there are payment options available to you, such as an installment agreement or offer in compromise. If you need to discuss such options, you may call (toll-free) 1-800-829-8815. Also, we have no record of your having filed a tax year 1997 Federal income tax return. If 1997 payments through withholding and/or estimated tax payments are not sufficiant to meet your Federal income tax liability for that year, penalties and interest will accrue on the balance owing and opportunities for certain payment options may be limited. It is in your best interest to resolve these outstanding issues soon.
If you have further legitimate questions or problems with your Federal income taxes, you may contact Sue Asbury, Examination Division Analyst, at (804) 771-2238.
|
Sincerely, /s/ Gayle Patterson |
|
| for |
Jane Looney Chief, Examination Division Virginia-West Virginia District |
I have recieved a letter from your delegate, Ms. Looney. I have attached a copy for your convenience. She states that an examination hearing would be an ineffective use of both my time and other resources of your office.
I must disagree. I think is to both of our benefit to set straight the administrative record in my case. Her concern is that she thinks I want to debate the tax law. This is incorrect. My only wish is to ensure that all of the proper steps have been taken and that all of the possible administrative remedies have been exhausted.
I state for the record that if you can show that my case has been dealt with according to the laws enacted by Congress, the regulations promulgated by the Secretary, and procedures as established within the Internal Revenue Manual, that I would be pleased to file a return of what can be shown by the above authorities to be includable as "gross income" and to assess myself for the income tax. At this point, however, I would be signing a return under penalty of perjury which I am not certain is true, correct and complete to the best of my knowledge, information and belief. My only concern is that the above listed authorities have been properly and lawfully followed. An examination hearing would be a very big step towards establishing such a record.
As a sample agenda, I offer the following:
1. I am not a citizen or resident of an internal revenue district of the United States as such districts are only in the District of Columbia and insular possessions of the United States. See requirement for the President to establish internal revenue districts at 26 USC 7621; authority delegated to the Secretary of the Treasury via E.O. #10289, which can be verified at 26 CFR 301.7621-1; the only application under this authority, per the Parallel Table of Authorities and Rules, located in the Index volume to the Code of Federal Regulations, is 19 CFR, Part 101, which is authority for the United States Customs Service to establish ports of entry. See E.O. #10289 published following 3 USC 301. In this case, the only authority that you might have, Mr. Burgess, in your capacity as district director is via customs and if I were engaged in the importation of some revenue taxable goods. I am unaware that I am engaged in such activities. I would therefore need to know if you would please make available a list of taxable articles I own in an internal revenue district subject to IRS jurisdiction per 26 CFR 301.6021-1. It is my hope that this list would be made available by your office at an examination hearing.
2. I am unaware that I am an "individual" required to keep books and records, and to file returns. I have never received a notice sent by you, Mr. Burgess, in your capacity as district director and subscribed by you requiring me to keep books and records and file returns, per requirement of 26 CFR 31.6001-6. Also, I would require proof of service of same. It is my hope that such documentation would be made available by your office at an examination hearing.
3. Someone in your office has executed a "substitute for return" (SFR) in my name for the year 1996 (which I believe is DLN 54277-253-20000-7). I have already sent a Privacy Act request for disclosure on this item and as yet your disclosure officer has not returned a copy to me. It is my hope that this SFR would be made available by your office at an examination hearing.
4. In order for the SFR procedure to be lawful, your office must have the requisite Delegation of Authority Order from the Secretary to execute such a return and this authority must expressly state that one of the forms you can execute is a 1040. I have already sent a FOIA to your disclosure office for a copy of this delegation of authority and as yet your disclosure officer has not returned a copy to me. It is my hope that this delegation of authority would be made available by your office at an examination hearing. Without a delegation of authority to execute a 1040 in my name, any administrative record so created is a denial of due process.
5. When the initial examination was done on this SFR, I was sent a Form 4549-CG from one Kathy Rapp, Group Manager. At that time, a copy of Publication 556 should have been sent in order to apprise me that I was entitled to an examination hearing. In my response, I demanded such a hearing in order to ensure that the administrative record was correct. During an examination hearing, I would have been able to summon the SFR and your authority outlined in (1), (2), (3) and (4) above. Also, I would have been able to summon witnesses from The Michie Company (now Lexis Law Publishing) and from the Soccer Organization of Charlottesville-Albemarle and depose them under oath to find out under which of the statutory groupings of gross income listed at 26 CFR 1.861-8(f)(1) the remuneration they paid to me would fall. In my estimation, LLP and SOCA have made erroneous claims that my remuneration is includable in gross income. My recent filing of the Forms 4852 and attachments demonstrate that I made a good faith effort to get LLP and SOCA to correct the administrative record in this matter. Also, since I have executed these statements under penalty of perjury, the presumption created by the W-2 and 1099 have been rebutted and cannot stand as conclusive evidence in this matter. Your denial of an examination hearing at this point would constitute a denial of due process.
Ms. Looney's letter states in paragraph 5 that there remains a balance due for 1996 of $8,899.35. As far as I can tell, the procedures by which you arrive at this amount are in error and without basis in law or regulation or your own administrative procedures. I hereby refuse this demand for cause based upon errors in fact and law. I am not liable for payment of this unsubstantiated and unattested amount. I DISCHARGE THIS PRESUMED LIABILITY WITHOUT PREJUDICE.
I know that I have not filed a return for 1997. I am sure that you can see why. I am a citizen living and working within the states of the Union without a social security number and I am not engaged in any revenue taxable activities. Given my situation, by the statutes and regulations that I can find, the only person on this planet who can make a determination that I am liable for the tax and so required to file a return is me. At this point, I am not sure that I can in good faith sign a return for 1997 under penalty of perjury, unless and until we get the matter of 1996 cleared up.
Again, I express that it is my hope that your office has followed the statutes enacted by Congress, the regulations promulgated by the Secretary, and procedures as established within the Internal Revenue Manual. Any departure from the above procedures would constitute a denial of due process.
I reiterate my Petition of Protest and Notice of Appeal executed on December 3rd of 1998, and state for the record that we cannot progress until I get an examination hearing. I would be pleased to schedule one at your convenience.
If you intend to pursue this erroneous demand, pursuant to your Codes and Regulations, the burden of proof is upon you and your agency to substantiate and prove your claim and demand. Pursuant to the Freedom of Information Act, 5 USC 552(a), please forward to me the following documents and information so that I can perfect my appeal. This is my firm promise to pay the fees for duplicating the documents requested below:
(1) A list of taxable articles I own in an internal revenue district subject to IRS
jurisdiction per 26 CFR 301.6021-1.
(2) A copy of the notice sent by the district director and subscribed by him requiring
me to keep books and records and file returns, per requirement of 26 CFR
31.6001-6. Also, I would require proof of service of same.
(3) A copy of DLN 54277-253-20000-7.
(4) A copy of any Delegation of Authority Order from the Secretary to execute a 1040
in my name and without my consent.
The above disclosures should be certified under seal of the IRS. In the event that one or more of the listed items does not exist, a disclosure of such a condition should be certified under seal of the IRS.
Sincerely,I declare under penalty of perjury under the laws of the United States of America that the foregoing is true, correct, and complete to the best of my knowledge, information and belief.
Executed on this 19th day of January in the Year of our Lord Nineteen Hundred Ninety- Nine.
/s/ Brad L. Barnhill
commonwealth of Virginia )
: affirmed
city of Charlottesville )
I hereby certify that on this 19th day of January in the Year of our Lord Nineteen Hundred Ninety-Nine, the above named Citizen whom I know (or has satisfactorily proved to me), appeared to attest and affirm that he is a Citizen executing the foregoing document.
I, THEREFORE, set forth my hand and seal in affirmation the execution thereof.
Lori A. PleasantsI hereby certify that I have mailed the foregoing document and enclosures to Mr. Roger K. Burgess, District Director of the Internal Revenue Service, 400 North Eighth Street, Richmond, Virginia, this 19th day of January in the Year of our Lord Nineteen Hundred Ninety-Nine.
/s/ Brad L. Barnhill|
brad.barnhill@mindspring.comHomeSite v2.5 Last Updated: Thursday, January 21, 1999 10:39:01 PM |
Go to the main journal: Tax Freedom - A Personal Odyssey |