UNITED STATES TAX COURT

Debra Patriot, )

Petitioner, )

) Docket # 20702-00

V )

) Reply to Answer to Amended Petition

Commissioner of IR )

Respondent, )

Replying to Answer of the Commissioner, Petition states:

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

2. Petitioner is prepared to state under oath that I had 1 dependent child, plus deductions for church donations, charities, etc.

3. Petitioner incurred tax preparation expenses. Petitioner may also be eligible for the telephone tax refund.

4. Petitioner’s main tax deductions are in relation to business deductions not listed. Travel on behalf of the business, a percentage of telephone expenses, a percentage of the use of my home for business purposes (and the related expenses involved with that), computer expenses, also, etc.

The taxes therefore listed on the 90-day letter are incorrect and should be reduced, along with the corresponding amount of penalties and interest.

Petitioner has no documentation to show my business expenses. However, 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 9^th 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. (Petitioner, it is clear, has failed to establish a lesser amount.)”

Certificate of Service: I hereby certify that on this date I sent properly a copy to opposing counsel.

_________________________; May 8, 2007

Debra Patriot