UNITED STATES TAX COURT
Richard Patriot ) Petitioner, ) Docket No. 11384-00 ) V. ) Opposition to Motion to Compel ) Production of Documents by CIR Commissioner of IR, ) Respondent, )
Petitioner hereby files his Opposition to Motion to Compel POD by CIR based on the following reasons:
1. District Counsel stated in several pleadings that a Motion to Compel POD was filed on February 28, 2007. Petitioner did not receive a copy, however I will answer that missing motion the best way that I can. In any event, I would like to reach a settlement in this case.
2. Due to a fire in my trailer about two years ago, all of my records were destroyed and I have no remaining documents to substantiate my business expenses, deductions, etc. Petitioner is prepared state under oath that I had three dependent children, plus deductions for donations to church (tithe), charities, etc.
3. Petitioner incurred tax preparation expense. Also Petitioner may be eligible for the telephone tax refund. Further, the W-2’s held by the IRS are not correct and may be the result of identity theft by illegal aliens.
4. Petitioners main tax deductions are my business expenses from my contract driving business. The company pays me one lump sum for driving my truck. From this gross figure, Petitioner is allowed to deduct my expenses from the gross to reach my net, which the IRS wants to tax.
Petitioner has no documentation to show his expenses. No one denies that I had expenses operating a truck on behalf of the people that hired me and that I incurred business expenses. My expenses were 60% of gross. My net would be 40% that which shows on the W-2 form from the company.
Also I am allowed two dollars per mile for operating expenses for the truck. Therefore, the taxes listed on the 90-day letter are incorrect and should be reduced. A corresponding amount of the interest and penalties would be reduced. Under the Cohen case, below, I can give a correct estimation of business expenses.
5. The Cohen case shows that in Tax Court that I can use reasonable figures, instead of figures that cannot be correct. Taxpayer can also reconstruct his lost paperwork to substantiate his deductions and business expenses.
Further I can claim a percentage of business expenses and profits for a business enterprise, even if I have no records to substantiate my business expenses. For example, a plumbing subcontractor could claim as expenses 60% of 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.)”
Certificate of Service: I hereby certify that on this date I sent properly a copy to opposing counsel.
_________________________ Date: April 18, 2007
Richard Patriot, Pro se
1776 Patriot Way, Madison, GA