10- June, 2008

David Patriot
Nevada City, CA 95959

TO: Diane Erickson
IRS Appeals Office
3310 El Camino Ave, Suite 170
Sacramento, CA 95821-6318

RE: David Patriot vs. Commissioner of Internal Revenue Docket # 357x-xx

Dear Appeals Officer:

You sent me your letter dated April 3, 2008 requesting to settle this case without a trial.

I request an out-of-court settlement and a meeting with someone in your office to present my documents records, receipts, etc, to support the deductions, credits, business expenses, etc. For the tax years in question I have a great deal of business expenses.

I request:

A. Waiver of all penalties.

B. Proper allowance of my business expenses which are the following:
            Office expenses:                        301.40          
            Shipping expenses:                      173.31
            Parts/cost of goods:                  5,825.81
            Outside Services:                     3,349.61
            Health care insurance:                2,415.00
            Phone expense:                          743.27          
            Business meals:                          43.16
            Capital equipment expense:            3,088.18
            Electricity:                            137.40
            Heating (propane):                      250.00 (estimate)     
            Auto expenses: 3000 @ .38/mi.         1,140.00 (estimate)
 
            Total of business deductions:       17,467.14
 

C. Full recognition for all of my deductions, credits, etc.
Real estate property taxes: 3,546.38

D. Credit for my tax return preparation expenses, including books and videos I purchased plus the full cost of seminars and classes I attended, including travel expense.

E. A refund of the illegally collected telephone excise tax in the amount of $50, (safe harbor).

F. Proper authentication of the W-2’s, 1099’s and other so called evidence of income.

G. At all meetings with the IRS, I hereby I notify you I will have a tape recorder and/or court reporter, representative, witnesses, etc.

Please schedule the conference with me at least 30 days in advance.

Regards,

David Patriot