Lee Roy Patriot
Greenville, SC 29605

June 29, 2009

State of South Carolina
Department of Revenue
301 Gervais St
PO Box 11249
Columbia, SC 29211-1249

Dear Sirs,

I am in receipt of your letter dated June 1, 2009.

I herby submit this affidavit as a true list of unreimbursed business expenses, deductions, credits, etc.

Attached is a list of unreimbursed business expenses, deductions, etc and the amounts for the tax years 2003 and 2005, I claim these business expenses add up to a total of $12535.00 for the cost of doing business, expenses and $6600.00 for deductions.

Taxpayer is neither a lawyer nor a CPA and has no legal or tax education training. I do not have adequate books and records to substantiate business expenses and deductions, etc. I am simply a working man trying to make ends meet. Since I was unable to fill out my tax return, I must hire tax professionals. Therefore taxpayer does not have the necessary records to substantiate his records and deductions but must reconstruct them under the Cohen rule. Petitioner is not an accountant or tax professional and did not keep all of his records for a specified period of time.

Taxpayer had 3 dependent children.

The reconstruction is based upon the Cohen Case. The Circuit Court of Appeals ruled in Cohen vs. CIR, 266 F2d 5 (1959); that in tax court, taxpayer can use reasonable figures, instead of figures conjured by the SCDOR that cannot be corrected. Taxpayer can also reconstruct lost paperwork to substantiate his deductions and expenses.

The 9th Circuit Court ruled in Cohen v. CIR, 266 F 2d 5(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, 39 F.2d 540 (2d Cir. 1930). Our objective 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.”

The SCDOR is authorized by State Legislature only to collect taxes that are actually due. The tax court has a duty to find taxes that are in fact owed. The SCDOR knows that taxpayer has unreimbursed business expenses, schedule A deductions, etc. Only the amount is unknown.

______________________
Lee Roy Patriot

List of deductions and expenses for tax year 2005 

I. Lee Roy- Head of Household for tax year 2005
A. Expenses for work include:
1. Special uniforms (shoes and pants) 			$   600
2. Laundering of uniform per year			$   300
3. Supplies not provided by employer			$ 1,500 
4. Meals during work $10 a day @ 200 days		$ 2,000
5. Cell Phone $50 a month for 12 months			$   600
6. Vehicle at work for 150 days @ $50 a day     	$ 7,500
7. Road atlas each year 				$    35
TOTAL BUSINESS EXPENSES		     	            	$12,535	

C. Deductions 
1. Charitable donations= tithe plus offerings 		$ 1,300
2. Non cash donations to the church per year		$   500 
3. Interest on Home mortgage=$400 @ 12 months		$ 4,800
TOTAL DEDUCTIONS					$ 6,600