John B. Patriot
1776 Freedom Way
Atlanta, GA

August 7, 2007

IRS Appeals Office
Phillip Dunn, Ste 508, MDP 43
Columbia SC 29201

Re: John B Patriot; Docket No. 217xx-xx

Dear Phillip Dunn,

You sent me your letter dated July 26, 2007 which was in response to my letter of 20 July 07.

Your documents do not show the amount of withholding. Please send me a copy of the W-2 form that my employer sent to your agency.

Also you failed to list my un-reimbursed business expenses in the amount of $5819. If you prefer, we can just figure that 20% of my gross from my employers went for expenses . That means that the remaining 80% of my payroll checks would be net receipts and considered taxable by your agency.

The Cohen v. CIR case shows that in tax court, you can use reasonable figures--instead of figures conjured by the IRS that cannot be correct. Tax victims can also reconstruct lost paperwork to substantiate their deductions and business expenses.

Further, you can claim a percentage of business expenses and profit for a business enterprise, even if you have no records to substantiate your business expenses. For example, a plumbing subcontractor could claim as expenses 60% of gross receipts from the form 1099s that the IRS received from the contractors.

The 9th Circuit Court ruled in Cohen v. CIR, 266 F 2d 5(1959):

''* * * We think our only proper course is to approach the problem indirectly by analysis of the record in the light of the principles established in Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930). Our objective will be, after resolving any reasonable doubts against petitioner, to reconstruct his gross income as betting commissioner at a figure which in our judgment it would be unlikely to exceed in fact. (Petitioner, it is clear, has failed to establish a lesser amount.)''

The purpose of the tax collectors is to collect the taxes that are actually owed, not to browbeat hard-working citizens who are unable to keep records because they struggle to make a living and work hard at distant locations. Due to my occupational and health problems, I am unable to maintain all the records that you seek.

However, we all know that I did incur large expenses for my job which I am by law allowed to claim as business expenses. Let us figure out what the law says I owe so I can start paying what I actually owe.

I request an out of court settlement. Please give me by business expenses, waive penalties, and I will sign what you want.

Yours,

John B. Rice

PS. I am disabled for health reasons. The state retirement board and SSA have ruled that I am unable to work, unable to manage my affairs, etc. Therefore, for health reasons, I was unable to maintain and keep vast records. I am entitled to consideration under the federal disability acts.