Free Motion to Dismiss - Rule 12(b)(1) - District Court of Federal Claims - federal

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 1 of 19

Defendant's Exhibit 9

B-55

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007
Mail Stv~

Page 2 of 19

Department of the Treasur J
Ii~ternal Revenue Service P. O. Box 47-421

624
Person to Contact:

Doraville, GA 30362

Mrs. B. Stephens
Employee Identification Number:

0781533133
Telephone Number:
Date: ru.ro 'j:; LUli J

MAl' fI'~ ,-Y'.,

770-455-2778
Hours:

E.J. & Janice L. Leblanc Jr
855 Shadow Oak Lane

7:00 AM - 3:30 PM
Time Zone:

Eastern
Day(s) of the Week:

Mandeville, LA 70471-1249

Tues. - Fri.
Taxpayer Identification Number:
Tax Year Ended:

December 31, 1986

Dear E.J. & Janice L. Leblanc Jr.
Enclosed is Form 4549-A explaining how the adjustments made during our examination of

affect your individual income tax return. The Form 4549-A does not require any signatures and should not be returned to us, but should be kept for your records,

the above return

If you owe additional tax, you will receive a bill for the additional tax and interest. If penalties are applicable because of the adjustments made during our examination, a separate report will be mailed to you. If you are due a refund, it will be sent to you within 6 to 8 weeks.

If you have any questions about this matter, please write to the person whose name is shown at the top of this letter, or you may call that person at the telephone number shown. If you prefer, you may call the IRS telephone number listed in your local directory. An employee there may be able to help you, but the office at the address shown on this letter is most familiar with your case. If you write to us, please provide your telephone number and the most convenient time for us to call you in case we need more information. Attach this letter to any correspondence to help us identify your case. Keep the copy for your records.
Thank you for your cooperation.
Sincerely yours,

S. E. llill
Chief~ Examination Branch

Enclosure: Form 4549-A Copy of this letter

Letter 2083 (SC) (Rev. 3-1986)
Cat. No. 63342P

B-56

000047

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 3 of 19

~ * *ATTENTION** ** * * * *ATTENTION* * * *** * *ATTENTION* * * * ***

*ATTENTION*

**

=== = == = = = = = ===== = = == = = === = = = = = = = == = === = = = = = == = = == = = = === == = === == = = =

- - - ~~~~IMPORTANT INFORMTION~~~~ - - - -

If you have any questions about the computations on this report or about any statements of balance due from this adjustment, please

contact:

Internal Revenue Service TErRA Report Writing Unit, Stop 624 3001 Northeast Expressway

Chamblee, GA 30341

Or,

or,

call us at (770) 455-2952 (not toll-free)
FAX (770) 455-2728 (not toll free)

This location is the only IRS office that can assist you even

though you may receive statements of balance due. from other

offices. Corresponding wi th other offices or calling other phone numbers will only delay a reply to you since this adjustment was completed by personnel at the above address.

I f you contact us in wri ting, please include:
~ -your name, address, and daytime phone number, ~ -your Social Security Number,

~ -the tax year (s) of the report,

~ -a concise list of your questions and ~ -any documents which would explain and support your claim.
If you have questions concerning the items adjusted, please contact the Tax Matters Person for this business entity. A complete and detailed report setting forth the reason and

authori ty for these adj ustments has been furnished to that person.
Thank you for your cooperation.
B. Stephens
TEFRA Report Wri ting Unit

------ --------------- --- -- --------------------- ------- -- - -- -- - -- ------------------- ---- - - -- -- - ------ --- - -- - - -- -------- -- --- -- - --* * * ATTENTION* * * * * * * * ATTENTION* * * * * * * * ATTENTION* * * * * * * * ATTENTION* * *

B-57

000048

Case 1:05-cv-00743-FMA
Form 4549A I

Document 19-6

Filed 12/07/2007

Page 4 of 19
I Page
Return Form No:

Department of the Treasury - Internal Revenue Service

Income Tax Examination Changes
55 or EI NumLier

of

Name and Address of Taxpayer E.J. & Janice L. Leblanc Jr.
855 Shadow Oak Lane

1040
Person with whom examination changes

Mandeville, LA 70471-1249

Name and Title:

were discussed.
1

Adjustments to Income

Period End12i31i19¡;(,

Period End

Period End

a. ORDINARY INCOME
b. c.

35,239.00

d.

e.
f.

g.
h.
;

I.
k.
I.

m. n. o.
p.
2. Total Adjustments 3. Taxable Income Per Return or as Previously Adjusted

35,239.00 558,602.00
93.H41.00
TAX RATE

4. Corrected Taxable Income
Tax Method

Filing Status

Joint
n,63 1.00

Tax 6. Additional Taxes
5.

7. Corrected Tax Liability
8

28,61.00

less
Credits

a.
b

c.

d. 9. Balance (Line 7 less total of lines 8a through 3d) 10. Plus a.

28.631.00

Other b. Taxes c.
d.
11. Total Corrected Tax Liabilty(line 9+line 10a -10d) 12. Total Tax Shown on Return or as Previously Adjusted 13. Adjustments to: a. Speial Fuels Credit
b. c.

28.631.00 14.033.00

14. Deficiency-Increase in Tax or (Overassessment
Decrease in Tax) (Line 11

less 12 adjusted by 13)

14,59R.00

15 Adjustments to Prepayment Credits 16. Balance Due or (Overpayment) (Line 14 adjusted by Line 15) ( Excludinq interest and nenalties)

14,598.00

The Internal Revenue Service has agreements with State tax agencies under which information about Federal tax, including increases or decreases, is exchanged with the States. If this change affects the amount of your State income tax, you should file the State form.

You may be subject to backup withholding if you underreport your interest, dividend, or patronage dividend income and do not pay the

required tax. The IRS may order backup withholding at 20 percent after four notices have been issued to you over a 120-day period
and the tax has been assessed and remains unpaid.

RGSNTVer. 1.0.00

Form CG-4549A

B-58

000057

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 5 of 19

,
Form 4549A I
Name and Address of Taxpayer

Department of the Treasury - Internal Revenue Service

Income Tax Examination Changes
55 or EI Number

I Page

of

Return Form No:

E.J. & Janice L. Leblanc Jr.
17. Penalties
Period End 12/31/1986

1040

Period End

Period End

a,
b.
c.

d.

e.
f.

g. h.
i.

j.
k.
I.

m. n,
18. Total Penalties

Underpayment attributable to negligence: (1981-1987) A tax addition of 50 percent of the interest due on underpayment will accrue until naid or assessed Underpayment attributable to fraud: (1981-1987) A tax addition of 50 percent of the interest due on underpayment will accrue until paid or assessed Underpayment attributable Tax Motiyated Transactions TMT interest will accrue and be assessed at 120% of underpayment rate in accordance with IRC 662Hc)
19. Summary of Taxes, Penalties and Interest:

0,00

0.00
0.00

a. Balance due or Overpayment Taxes - Line 16, Page 1
b. Penalties (Line 18, Page2)-computed to 03/29/2001 c. Interest (IRC§ 6601)-computed to 03/29/2001

14,598.00
0.00 0,00 14.598.00

d. TMT Interest - computed 03/29/2001 on TMT underpayment e. Amount due or refund (sum of lines a, b, c and d)
Other Information:

AGRI - CAL VENDUE ASSOCIATES
# 33-0189461

Examiner's Signature:
Mrs. B. SteDhens

Employee 10:

District:

Date:

Atlanta

!).., 1"('1'4

MAR

U I-UU j

0781533133
Form CG-4549A

RGSNT Ver. 1.50.00

B-59

000049

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 6 of 19
Schedule number or exhibit

Form 886-A
(Rev. January 1994)886-A
Name of

EXPLANATION OF ITEMS
Taxpayer Identification Number
Y ear/Period Ended

Taxpayer

E.J. & Janice L. Leblanc Jr

i 986

ORDINARY INCOME

Tax Period 1986
RECORDS.

Per Return

Per Exam

($69,380.00)

($34,141.00)

Adjustment $35,239.00

THIS REPORT IS FURNISHED ONLY FOR INFORMATION; KEEP IT FOR YOUR
THE EXAMINATION OF THIS PARTNERSHIP INDICATES THAT YOUR DISTRIBUTIVE SHARE OF ORDINARY INCOME (LOSS) SHOULD BE CORRECTED AS SHOWN ABOVE. A DETAILED REPORT WHICH SETS FORTH THE ADJUSTMENTS TO THE PARTNERSHIP INCOME HAS BEEN FURNISHED TO THE TAX MATTERS PARTNER. PLEASE CONTACT SUCH INDIVIDUAL OR ORGANIZATION FOR ADDITIONAL INFORMATION.

Form 886-A (1-1994)

Department of the Treasury - Internal Revenue Service

B-60

000050

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 7 of 19

Name of Taxpayer: E.J. & Janice L. Leblanc Jr Identification Number:

02/27 /200 i

Total

1.50.00

HOW TO PAY YOUR TAXES
If you agree with our examination, pay now by sending a check or money order and your signed agreement. The enclosed report does not reflect any balance currently due on your account.

Why it is to your advantage to pay now:

· Decreases future interest charges · Prevents assessment of failure to pay penalty · Reduces payment of nondeductible interest · Eliminates further contact with us
If you agree with our examination and cannot pay now:

1) Can you pay the full amount within 120 days? (J Yes (J No
If yes, send in the signed agreement now and submit the balance due when you
receive a bilL.

If no, you may be eligible for a payment plan.
2) If you would like us to consider an installment agreement, submit your written request

or check the box below and return this flyer with your signed agreement.

( J I would like to pay $

per month.

(We encourage you to make your payments as large as possible to limit penalty and interest charges.)
I would like my payment to be due on the
of the month.

(Please indicate a date between the 1st and 28Ui of the month.)

You will be charged a $43 fee if your request is approved. DO NOT include

the fee with this flyer. We will send you a bill for the fee when we approve your request.
Please provide a telephone number where we can contact you regarding

your request.
Home: (

Work: (
ALSO, if you agree with our examination, PLEASE SIGN PAGE 2 OF THE REPORT (Form 4549)
and return pages 1 and 2 to us.

* Interest and applicable penalties will continue to accrue until your balance is paid In fulL.

B-61

000051

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 8 of 19

EXPLATION OF ADJUSTMNTS
SECTION 6621- (C) NAM OF TAXPAYER:

I SOCIAL SECUITY NUER:
I I

E . J. & Janice L Leblanc Jr.

I YEAR/PERIOD ENDED: December 31, 1986

Section 6621 (C) IRC

Since the underpayment of tax is attributable to a tax motivated transaction, the interest to be applied to any underpayment after 12-31-84 is 120% of the adjusted rate of interest established under IRC Section 6621 (C). The amount of the underpayment attributable to the tax motivated transactions is $ 14,598.00

B-62

000052

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 9 of 19

Defendant's Exhibit 10

B-63

ArK, -U4 UL (WCU) U7: 46
l.U l Q .,PD,

SPEEDWA Y

Case 1:05-cv-00743-FMA

Document 19-6

~~~~I-Ybb-l~UU?-l FiledWI 12/07/2007 Page 10 of 19 ~UU1l1 L~'
Oiileoflhisnolicr MAR. 26, 2001
Ta.xpllYor IdBnlifyinu Numbor

TEL:5046260043 P 002

rs

Department of the Treasury

Internal Revenue Service
MEMPHI S, TN 37501

I~orm 1040 b.xF'mlo(f DEC. :)1, 1qB6
For ;isslslflllC8 YÜlIlli:iy
¡;.11111~ ;'1'

1-800-829-8B15
i iII f' i 111.11" 1/11 i i" i ii" 11111111111", I. 'I. '11,,", 11111/ III

EJ LEBLANC

MANDEvILLE LA 70G71-12G9555

855 SHADOW OAK LN

WE CHANGED YOUR ACCOUNT 18247-434-08033-9
THE CHANGECS) BELoW RESUL TED F~OM AN EXAMINATION OF YOUR TAX RETURN SHOWN ABOVE, PLEASE SEE YOUR COpy OF THE EXAMINATION REPORT FOR A DETAILED EXPLANATION OF THE CHANGES.
IF YOU HAVE ANY QUESTIONS ¡ PLEASE CAL L US AT THE NUMBER LISTED ABOVE.
ST ATEMENT OF ACCOUNT

FOR ACCOUNT OF E J 8 JANICE L LEBLANC JR

ACCOUNT BALANCE BEFORE EXAMINATION ACTIoN

",O,006.59CR , 'i \~~~
47 J 36B.12 \ Yi ~ $ll,969,53
14,59B.ao (!~v;J- "~q')- ~ ')

INCREASE IN TAX BECAUSE OF EXAMINATION ACTION INTEREST CHARGED
AMOUNT YOU NOW OWE

WE WANTED TO ENSURE THAT BOTH YOU AND YOUR SPOUSE RECEIVE THIS NOTICE, SO WE'VE SENT A COpy TO EACH OF YOU. EACH COpy CONTAINS THE SAME INFORMATION RELATED TO YOUR JOINT ACCOUNT. ANV AMOUNT YOU OWE OR BALANCE DUE SHOWN SHOULD BE PAID ONLY ONCE. WE WILL ISSUE ANY REFUND SHOWN ONLY ONCE.

PLEASE PAY THE FULL AMOUNT BY APR. 16, 2001. IF YOU'VE ALREADY PAID YOUR TAX IN FULL OR ARRANGED FOR AN INSTALLMENT AGREEMENT, PLEASE DISREGARD THIS NOTICE.
IF YOU HAVEN'T PAID, MAIL YOUR CHECK OR MONEY ORDER AND THE TEAR-OFF STUD FROM THE LAST PAGE OF THIS NOTICE. MAKE YOUR CHECK PAYABLE TU UNITED STATESTREASURV AND WRITE YOUR SOCIAL SECURITY NUMßER ON 11. IF YOU CAN'T PAY IN FULL,
PLEASE CALL US TO DJ SCUSS PAVMENT.

OAf'C

B-64

000059

I1rrc -U4 UL \lYtUJ Ulati
LU Hi Ii!:ll, ,

::rttUlYA ¡

ILL: :iU4b¿bUU4j

MEMPHIS SERVICE CENTE.

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 11 of 19

P 003
LI- :

TAX PERIOD: DEe, 31. 19B6

EXPLANATION OF PENALTY AND INTEREST CHARGES

THE PENALTY AND INTEREST CHARGES ON YOUR ACCOUNT ARE Exp~ArNEP ON THE FOlLOWTNG PAGEs. IF YOU WANT A MORE DETAILED EXPLANATION OF YOUR PENALTIES AND TNTEREST. PLEASE CALL US AT THE TELEPHONE NUMBER LISTED ON THE TOP OF THIS NOTICE,

* $47,368.12 INTEREST - IRC SECTION 6601
WE CHARGED INTEREST BECAUSE, ACCORDING TO OUR RECORDS, yOU DIDN'T PAY YOUR TAX ON TIME. WE FIGURE INTEREST FROM THE DUE DATE OF YOUR RETURN (REGARDLESS OF EXTENSIONS) TO THE DATE WE RECEIVE YOUR FULL PAVMENT OR THE DATE OF 1 HIS NOTICE.
THE INTEREST RATES ON UNDERPAVMENT AND OVERPAVMENT OF TAXES ARE AS FOLLOWS:
PERIODS
PERCENTAGE RATES

UNDERPAVMENT OVERPAYMENTOCTOBER 1, 1988. THROUGH MARCH 31. 1989.......,..,......., 11 1n APRIL 1. 19B9 THROUGH SEPTEMBER 30, 1 qaq. , . . . . .. "., 12 i i OCTOBER 111989, THROUGH MARCH 31. lqqi................... 11 1n APRIL 1, iqqi, THROUGH n¡:CEMllER 31,1991.................. 10 9 JANUARV 1, 1992, THROUGH MARCH 31, 1992...............,.,. 9

APRIL 1,1992 THROUGH SEPTEMBER 30,1992.................. B
OCTOBER 1,1994 THROUGH MARCH 31,1995....,............... q
OCTOBER-l.--199c-l-HROUGH JUNE 30, 1994........,..........,. I JULY 1, 1994 THROUGH SEPTEMBER 30. 1994..............,.... B

8
7
. (¡

APRIL 1. 199B, THROUGH DECEMBER 31, ¡9ga.................. B JANUARY 1,1999 THROUGH MARCH 31, 19qq,."................ 7 APRIL 1,1999 THROUGH MARCH 31,2000...................... B

APRIL 1, 1995 THROUGH JUNE 30,1995".",..""......... 10 JULY 1,1995 THROUGH MARCH 31.19%...................... 9 APRIL 1,1996 THROUGH JUNE 30,1996....................... 8 JULY 1, 1996 THROUGH MARCH 31, 1 998. . . . . . . . . . . . . . . . . . . . . . . 9

7 Ii

9

8
7
R

7
7

BEGINNING APRIL 1 ¡ 2DDO...................... q

8 q

BEGINNING JANUARY 1, 1999. THE INTEREST RATE WE PAY ON OVERPAYM~NT OF TAXES, EXCEPT FOR CORPORATE TAX~S, is HIE SAME AS THE RATE OF INTEREST WE CHARGE ON HIL UNDERPAYMF-NT OF TAXES. THE LAW REQUIRES US TO REDETERMINE THESE INTEREST RATES

PAID ON AN OVERPAYMENT OF TAXES WAS ONE PERCENT LESS THAN THE RATE OF rNTERtST WE
CHARGED ON YOUR UNDERPAVMENT OF TAXES.

QUARTERLY. FROM JANUARY 1.1987 THROUGH DECEMBER 31, 199a THE INTEREST RATE W(

WE COMPOUND INTEREST DAILY EXCEPT ON LATE OR UNDERPAID ESTIMATED TAXES Fa~ INDIVIDUALS OR CORPORATIONS.
WE CHARGE A SPECIAL INTEREST RATE OF 120 PERCENT OF THE UNOERPAYMENT RATE IF;
- THE RETURN, NOT INCLUDING EXTENSIONS, WAS DUE BEFORE JANUARY 1, 199O, - THE UNDERPAVMENT WAS MORE THAN $1, ODD J AND - THE UNDERPAYMENT CAME FROM A TAX-MOTIVATED TRANSACTION.

WE CHARGE INTEREST ON PENALTIES FOR LAT£ FILING, OVER OR UNDERSTATING VALUATION5, AND SUBSTANTIALLY UNDERSTATING THE TAX YOU OWE. ALSO, WE CHARGE INTEREST ON FRAUD AND NEGLIGENCE PENAL TIES IF THE TAX RETURNS, INCLUDING EXTENSIONS. ARE DUE Afl rR DECEMBER 31, 1988. -- -,- nhWE- CONTINUE TO'-ttfA-RGE-i-N-TtifßT UNTIL YOU PAY THE AMOUNT YOU OWE IN FULL.

* ADDITIONAL INTEREST CHARGES
IF THE AMOUNT YOU OWE is $100,000 OR MORE, PLEASE MAKE SURE THAT WE RECEIVE YOUR PAYMENT WITHIN 10 WORK DAYS FROM THE DATE OF YOUR NOTICE, IF THE AMOUNT VDU OWE IS LESS THAN $100,000, PLEASE MAKE SURE THAT WE RECEIVE YOUR PAYMENT WITHIN 21 CALENDAR DAYS F~OM THE DATE OF YOUR NOTICE. IF WE DON'T RECEIVE FULL PAYMENT WITHIN THESE TIME FRAMES, THE LA~ REQUIRES US TO CHARGE INTEREST UNTIL YOU PAY THE FULL AMOUN1' YOU OWE.
INTEREST PAID
BEGINNING WITH TAX YEAR 1991 i YOU CAN NO LONGER DEDUCT INTEREST YOU PAID TO THE INTERNAL REVENUE SERVICE (IRS) AS AN ITEMIZED DEDUCTION ON YOUR FORM 1040, SCHEDULL A.

PAr.i: ?

B-65

000060

1111\. -V4 UI \Ht,UJ UI :41
C,O 16fiBÐ

::n,GUI1Al

lcL: ~U4b2bUU43

P 004

Case 1:05-cv-00743-FMA
MEMPHIS SERVICE CENTEt

Document 19-6

Filed 12/07/2007

Page 12 of 19

cr.

TAX PERIOD: DEe. 31, 1086

INTEREST REDUCED
I YOUR TAX RETURN RETURN, YOU MUST REPORT THIS REDUCTION OF INTEREST AS INCOME ON ON ON YOUR TAX
IF WE REDUCE INTEREST THAT YOU PREVIOUSLY REPORTED AS A DEDUCT

FOR THE YEAR WE REDUCE IT.
INTEREST REMOVED - ERRONEOUS REFUND
THE LAW REQUIRES US TO REMOVE INTEREST up TO THE DATE WE REQUEST YOU TO REPAV THE ERRONEOUS REFUND WHEN: - YOU DIDN i T CAUSE THE ERRONEOUS REFUND IN ANY WAY, AND - THE REFUND DOESN'T EXCEED $50,000.
THE IRS MAY REMOVE OR REDUCE INTEREST ON OTHER ERRONEOuS REFUNDS BASED ON THE FACTS AND CIRCUMSTANCES INVOLVED IN EACH CAsE.

ANNUAL INTEREST NETTING
EFFECTIVE JANUARY 1, 1987, THROUGH DECEMBER 31. 1998, THE INTEREST RATE WE PAID ON THE OVERPAYMENT OF TAXES WAS 1% LESS THAN THE INTEREST RATE WE CHARGED ON THE UNDERPAYMENT OF TAXEs. AS OF JANUARY I, 1999, THE OVERPAYMENT AND UNDERPAVMENT

- ~ATES ~~.s---l-WE PAY AND CHARGE ARE THE SAME, -EXC;EPT -FOR- CfRPDRkfE OVERPAYMENTS. IF WE REFUND AN OVERPAYMENT WITH INTEREST AND WE HAVE TO INCREASE
THE TAX AT A LATER DATE, WE GIVE SPECIAL CONSIDERATION TO THE INTEREST ON THAT
ACCOUNT,

ON THE TAX INCREASE MADE AFTER THE REFUND. WE WI LL CHARGE THE LOWER REFUND RATE OF INTEREST (UP TO THE AMOUNT Of THE REFUND) FOR THE SAME TIME PERIOD T!,AT WE PAID INTEREST ON THE OVERPAYMENT.

REQUEST FOR NET INTEREST RATE OF ZERO
GENERAL OF TIME RECEIVE PAVMENT RULE - IF YOU OWE INTEREST TO THE IRS ON AN UNDERPAYMENT FOR THE SAME FERiOD THAT THE IRS OWES YOU INTEREST ON AN OVERPAYMENT, YOU MAY BE ENTITLED TO A NET INTEREST RATE OF ZERO (THE SAME RATE OF INTEREST APPLIES TO YOUR UNDERAS YOUR OVERPAYMENT).

TO RECEIVE THE NET INTEREST RATE OF ZERO FOR INTEREST YOU OWED (OR PAID 1 THE IRS. OR INTEREST THAT WE OWED (OR PAID) YOU BEFORE OCTOBER I, 199B, YOU MUST FILE A FORM 843, CLAIM FOR REFUND AND REQUEST FOR ABATEMENT. FOR MORE INFORMATION ON THE FILING REQUIREMENTS FOR THE FORM 643, SEE REVENUE PROCEDURE 99-43. 1999-47 I.R.D. 579.
R~VENUE PROCEDURE 99 - 43 AND FO~M 843 ARE AVAI LADLE ON THE WORL D WIDE WEB AT
WWW. IRS. USTREAS. GOV

TO QUALIFY FOR THE NET INTEREST RATE OF ZERO, THE PERIOD OF LIMITATION FOR CLAIMING A REFUND OF INTEREST ON AN UNDERPAVMENT AND THE PERIOD OF LIMITATION FOR CLAIMING ADDITIONAL INTEREST ON AN OVERPAYHENT MUST HAVE BEEN OPEN ON JULY 22, 1998. GENERALLY, THE PERIOD OF LIMITATION FOR CLAIMING A REFUND OF INTEREST ON AN UNDERPAYMENT is 3 YEARS FROM THE TIME YOU FILED YOUR TAX RETURN, OR 2 VEARS FROM THE TIME YOU PAID THE INTEREST, WHICHEVER IS LATER. THE PERIOD OF LIMITATION TO REQUEST ADDITIONAL INTEREST ON AN OVERPAYMENT is 6 YEARS FROM THE DATE OF THE REFUND. YOU MUST FILE FORM 843 ON OR BEFORE THE CLOSING DATE OF THE LATER STATUTE OF LIMITATION PERIOD. MAIL FORM 843 TO:

U, S. MAIL
I NTERNAL REVENUE SERVICE NET RATE INTEREST NETTING CLAIM F.O. BOX 9987

MAIL STOP 6800

OGDEN, UT 84409

B-66

000061

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 13 of 19

Defendant's Exhibit 11

B-67

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 14 of 19

A~ll:: i__~__
~COHnED

':' L+,

UNITED STATES TAX COURT

AGRI -CAL VENTURE ASSOCIATES, FREDERICK H. BEHRENS,

Tax Matters Partner,
v.

,W1 Ii j Sl! :~---t . v' :~ll:t 4--' i~ STAT. L.
12530-90!. r--¡ s: 7JDGE

Petitioner,
COMMISSIONER OF INTERNAL REVENUE,

Docket No.

¡i.i~_:.'
DECISION

Respondent.
Pursuant to Rule 248 (b) of the Tax Court Rules of Practice and Procedure and Respondent i s Motion for Entry of Decision, it

iS

adj ustments to the partnership i terns of Agri -Cal Venture
1986 Year
ADJUSTMENTS TO ORDINARY INCOME:

ORDERED AND DECIDED: That the following statement shows the

Associates for the taxable year 1986, as set forth below:

Partnership Item
Farming Expense Schedule F

As Reported

As Determined

Other Deductions
Capi tal Contributed during the year

$32,181,001.00 634,885.00 $ $12,660,000.00 $27,607,878.00

$16,081,646.00 634,885.00 $ $12,660,000.00
$ 4,391,130.00

Liabilities
TAX PREFERENCE ITEMS:
Partnership Item
Qualified Investment

As Reported

As Determined
$ 5,781,469.00

Expense

$30,428,782.00

~i 0- _.,~

~nrp

B-68

_~ ,~_,:;J ,:" cJ U \.

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 15 of 19

Agri-Cal Venture Assoc. Decision Document Docket No. 12530-90

2

That the foregoing adj ustments to partnership income and expense are attributable to transactions which lacked economic

substance, as described in former I.R.C. § 6621 (c) (3) (A) (v), so

as to result in a substantial distortion of income and expense,
as described in I.R.C. § 6621 (c) (3) (A) (iv), when computed under

the partnership i s cash receipts and disbursements method of

accounting; and

substance.

Tha t 1 i ab i 1 it i e s

in

the amount of $23, 216, 74~ lack economic

-J ct VVO s, 1-J~x:'lv--;¿~

Judge

Entered: ~jUL 1.9 20m_

B-69

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 16 of 19

Defendant's Exhibit 12

B-70

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 17 of 19

United States

of America

Department of the Treasury

Internal Revenue Service
,.

Date: August 3, 2005

CERTIFICATE OF OFFICIAL RECORD

I certify that the annexed transcript(s) is(are) an exact transcript of the account of the Taxpayer named herein in respect to the taxes specified. It is a true and complete transcript for the period(s) stated of all assessments, abatements, credits, and refunds relating thereto as disclosed by the records of this office as of the date of this certification. It also contains a statement of all unidentified and advanced payments, if any, for the periods(s) stated.

E J & Janice L. Leblanc

For tax period(s) December 31, 1999
Form 1040 Certification of Assessment and Payments consisting of 3 under the custody of this offics.

page( s)

IN WITNESS WHEREOF, I have hereunto set my hand, and caused the seal of this offce to be affixed, on the day and year first above written.
By direction of the Secretary of the Treasury:

Catalog Number 19002E

Form 2866 (Rev. 09-1997)

B-71

Case 1:05-cv-00743-FMA

Document 19-6

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Page 18 of 19

CERTIFICATE OF ASSESSMENTS, PAYMENTS, AND OTHER SPECIFIED MATTERS
EJ & JANICE L LEBLANC

EIN/SSN:

TYPE OF TAX: U.S. INDIVIDUAL INCOME TAX RETURN

FORM: 1040 TAX PERIOD: DEC 1999
DATE

EXP LANA T I ON OF TRANSACT I ON

ASSESSMENT, OTHER DEBITS (REVERSAL)

PAYMENT,

ASSESSMENT

(REVERSAi)

CREDIT

DATE (23C, RAC 006 )

ADJUSTED GROSS INCOME

154,695.00

T AXAB LEI Nc'OME

130,806.00

05-15-2000 RETURN FILED & TAX ASSESSED 49221-141-05302-0 200022 04-15-2000 WITHHOLDING & EXCESS FICA
04-15-2000 EXTENSION OF TIME TO FILE

31,832.00

06-12-2000

36,435.00

EXT. DATE 08-15-2000

06-12-2000 REFUND

(4,603.00)

05-30-2002 AMENDED RETURN FILED

49277-557-00270-2 49277-575-01178-2

05-30-2002 AMENDED RETURN FILED ADDITIONAL TAX ASSESSED 49254-506-05060-3 200317 ADDITIONAL TAX ASSESSED BY EXAMINATION AUDIT REVIEW 49247-597-90030-3 200330
08-04-2003 RENUMBERED RETURN
o .00 o .00

05-05-2003 08-04-2003

49247-597-90030-3
PAGE
1

FORM 4340 (REV. 01-2002)

B-72

Case 1:05-cv-00743-FMA

Document 19-6

Filed 12/07/2007

Page 19 of 19

CERTIFICATE OF ASSESSMENTS, PAYMENTS, AND OTHER SPECIFIED MATTERS
EJ & JANICE L LEBLANC

EIN/SSN:

FORM: 1040 TAX PERIOD: DEC 1999
BALANCE

TYPE OF TAX: U.S. INDIVIDUAL INCOME TAX RETURN

o .00

I CERTIFY THAT THE FOREGOING TRANSCRIPT OF THE TAXPAYER NAMED ABOVE IN RESPECT TO THE TAXES SPECIFIED is A TRUE AND COMPLETE TRANSCRIPT FOR THE PERIOD STATED,
AND ALL ASS E SSM E N T S, AB ATE MEN T S, C RED ITS, REF U N D S, AND A D V A N CEO RUN IDE N T I FIE D

PAYMENTS, AND THE ASSESSED BALANCE RELATING THERETO, AS DISCLOSED BY THE RECORDS OF THIS OFFICE AS OF THE ACCOUNT STATUS DATE ARE SHOWN THEREIN. I FURTHER CERTIFY THAT THE OTHER SPECIFIED MATTERS SET FORTH IN THIS TRANSCRIPT APPEAR IN THE OFFICIAL RECORDS OF THE INTERNAL REVENUE SERVICE.

:; ::: ;::: ~:: ~ :::;;:~ ;:: ~ ::: ;::: ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

PRINT NAME:

Beverly S. Nadermann

TITLE:

Oper a t ions Manager, Accoun t ing Con tro 1/ Services
sc-c 198 (Rev.8)

DELEGATION ORDER:

LOCATION: INTERNAL REVENUE SERVICE

ACCOUNT STATUS DATE 07/28/2005

FORM 4340 (REV. 01-2002)

PAGE

2

B-73