November 10, 2008

SABRA G. KLEIN, IRS Appeals
Suite 517
4050 Alpha Road
Dallas, TX 75244

Re: Randy Freeman v. C.I.R. Docket No. 104xxx

Dear Sabra G. Klein:

I trust you received my letter of October 19, 2008 in which I listed my expenses and tax deductions for the tax year 2003 that you requested. I have sent this information to you somewhat in advance of the November 14, 2008 deadline you have advised me of. I am slow in these matters because I have difficulty in understanding and comprehending all of the IRS tax laws, codes, rules and regulations Ms. Klein. They all seem so very complicated, plus I am not legally oriented and I do not understand the legal language, lawyer talk, etc. I honestly wish that I were better able and capable of understanding this stuff, I feel as if I am extremely dumb here.

Regarding my expenses, deductions and documentation, the actual records were stolen along with other important files in one of the vandalism-thefts at my home. Although no culprits were ever found, we feel certain these acts were committed by illegal aliens which occur quite frequently nowadays. As you may know too, these illegal aliens have become more and more numerous, sometimes using our SS numbers, account numbers and other private information to their advantage and illegal profit. In this regard Ms. Klein, under the COHEN case (*see below) I can give a correct estimation of expenses and deductions. Taxing the taxpayer on his gross instead of net is unauthorized. The Cohen case clearly shows that in Tax Court, I can use reasonable figures and that the taxpayer can reconstruct his post paperwork to substantiate his deductions and expenses.

The 9th Circuit Court ruled in Cohen v. CIR, 266F.2d; 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, 39F.2d 540 (2d Cir. 1930). Our objectives 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.)”

I hope this is helpful as the figures that I have provided you with are most reasonably accurate according to my reconstruction.

Sincerely,

Randy Freeman
Bullard, TX 75757 USA

Cc: RMG