Wane M.
Rock Hill , SC 29730

January 27, 2008

J Craig Young
Dept of the Treasury
IRS Office of Chief Counsel
320 Federal Place , Room 509
Greensboro, NC 27401

RE: Thomas Patriot; Docket No. 4048-xxxx

Dear Mr. Young,

1. Petitioner requests out of court settlement in this case. Petitioner requests his waiver of fees, business expenses, dependents, deductions etc.

2. Petitioner is prepared to state under oath that he had expenses, plus deductions, charities, etc.

3. Petitioner has no documentation to show his expenses and estimates at least 60% of Gross for deductions (including Telephone and mileage etc…) The Net would be 40%.

4. Petitioner is allowed to deduct expenses from the gross to reach net, which the IRS wants to tax.

 Therefore, the taxes listed 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. The Tax Service is commissioned by Congress to tax the people fairly- not punish citizens for unpopular political beliefs. Taxing taxpayer on his gross instead of net is unauthorized.

5. The Cohen case shows that in Tax Court, 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:

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Wane M.