Tax Rebuttal

Dear Sir or Madam, I have enclosed evidence and reasoning of why the original amount I owe the IRS is incorrect, and have provided a revised table of how much I correctly owe the IRS. Reasoning: The IRS counted the $5198.36 from stock sales of 370 shares of SEBL on ameritrade (#001 SSN: 123-456-7890 Form 1099-B Sales Date: 02-12-2004) as all profit due to lack of cost basis for those stock sold. I have included a transaction copy from Ameritrade that shows when I bought those stocks (370 shares of SEBL) on 11/26/2003 for $4842.78 So the cost basis for the stock transaction on 02-12-2004 was $4842.78 The income from that transaction was $355.58 (calculated from $5198.36 - $4842.78) Here is the revised change table to my return: Changes to Your Income and Deductions SECURITIES

Shown on Return

Changes to Your Tax Computation Taxable Income, line 42 Tax, line 43 Total Tax, line 62

Shown on Return

Reported to IRS, or as Corrected

$17,090

$17,449 Income Net Difference Total Change to Taxable Income As Corrected

$356 $356 $356 Difference

$76,162

$76,518

$356

$15,956 $15,956 Net Tax Increase

$16,054 $16,054

$98 $98 $98

Summary of Proposed Changes Amount of Tax Increase Interest, IRC Section 6601, From 04/15/2005 to 04/19/2006 Total Amount You Owe Sincerely

Difference

$98 $8 $106