December 30, 2006
Notice of Request for Contested Case Hearing
I would like to reach a settlement in this case and pay all taxes I owe. For the tax year in question I had four dependent children, tithe deductions, medical and business expenses, other charitable donations and home interest expense. I would like to meet to show and discuss these specifics. Much of this has already been communicated to the department of revenue but ignored.
I am entitled to a real hearing on this matter before the SCDOR prior to the ALJís involvement. I request the case be remanded to them so we can reach a settlement in this case. I have requested from the DOR the source of the assessment against me; i.e. the certified form(s) from the IRS showing my alleged tax liability and other documentation to prove my AGI, etc. They have failed to furnish these essential documents to me as required by S.C. Code, Section 12-58-70. The DOR is attempting to use hearsay, unauthenticated documents and incorrect calculations and figures against me. This should be halted by the administrative court.
The S.C. Department of Revenue should be held to the same standard regarding the substantiation of information as they are demanding of me. When I met with David Mayes in September I repeatedly requested this level of corroboration of data they are relying on to support their assessment. They refused to understand that a number printed on a form is not support for the number in question (I suspect they do, in fact, understand it very well). Case in point is the stock sale transactions they listed as 100% taxable (cost basis of zero). Not only do they have nothing to substantiate this assumption, itís completely unreasonable, and therefore in violation of code section 12-60-430. If they had indeed relied upon sourced documentation (the likes they claim is required by me to support any deductions I claim), they would have discovered the offsetting buy transactions. This indicates a willful failure to accurately calculate the assessment and a refusal to use the best information available, resulting in an erroneous tax liability calculation.
The SCDOR should abide by the same standards they require the citizens of the state to abide by. The information they relied on to assess me was all second-hand with no substantiation. If this is a legitimate and acceptable standard I should be permitted to use the same to support all my expenses and deductions, and the DOR should be required to provide me a hearing to present this information to them and reach a settlement prior to proceeding to the ALJ.