District Director

Attention: Chief Special Procedures Function

Internal Revenue Service

300 West Congress, FB46

TUCSON, AZ 85701

RE: Federal Tax Lien on Private Residence

Taxpayer I.D.: ****confidential****

Ron Smith, Phoenix Revenue Officer (86-01-3112)

Serial Number 869727330

Taxpayer's Correspondence of December 9, 1997 and 25 pages of enclosures, constituting the Taxpayer Defense File.

May 24, 1999

Dear Sir or Madam:

I take this opportunity to refer to our above-cited correspondence and to our long-outstanding dispute detailed in the attached 25-page file.

During the intervening 17-month period since my last letter of December 9, 1997, the unjustifiable federal tax-lien imposed upon my home has not been rescinded. The meeting, referred to in Point 1 of this December 1997 letter, as proposed by the Las Cruces IRS office, did not materialize apparently due to improper coordination on the part of other IRS offices scattered throughout the Southwest. The lien was therefore imposed, completely on the basis of erroneous suppositions, without my being able to defend my position.

Once again, I emphatically refer you to the crucial points contained in the referenced taxpayer defense file related to, among other factors, (1) non-receipt of U.S. Tax Court documents, (2) the justifiable absence of bankruptcy proceedings, (3) the sequential description of events, and (4) the series of compounded errors on the part of Special Investigative Agent Kathleen Jacobs leading to the unjust imposition of this Lien.

I would like to indicate herebelow, for purposes of focusing your attention on the most urgent and salient of these points, those factors which have, because of new tax legislation, changed during the intervening months, as well as my original position on other aspects of this case. Indeed, the following observations are made particularly in light of recently modified laws requiring that the BURDEN OF PROOF be shifted to the IRS. In light of the following points, I now seek, therefore, from your offices tangible, documentary indications of my supposed tax liability for 1989 and 1990 in the (uncollectible) 6 and 7 digit amounts you claim I owe on properties which were, quite simply, never mine and for which, therefore, I never filed any claim at time of seizure from the Aguirre Organization.

URGENT AND SALIENT POINTS OF CONTENTION

1. Not having ever been formally charged in any criminal matters related to the Aguirre Trials, and yet being improperly found implicated, by the IRS, in civil aspects of this case constitutes a clear-cut instance of double jeopardy.

2. It has come to my attention in the interim that Ms. Kathleen Jacobs obtained her misinformation from Department of Justice files, based predominantly on unfounded hear-say and clearly perjured testimony, which never produced conclusive evidence of my involvement in any activity for which I could possibly be held criminally or civilly liable. I was absolved of all involvement, not only because of testimony against corrupt DEA agents, but because no proof of my knowingly or unknowingly laundering funds, or of possessing Aguirre properties, could be produced.

3. My present spouse, Maria Maynes, was never involved in any of the matters under discussion. Her name may have been confused with that of my former spouse. All of my present wife's income is, and was, derived from sources properly recorded on tax forms filed for the years in question and thereafter.

4. Under recently promulgated tax legislation, I now request full disclosure of the information in your files on which you predicated imposition of a Federal Tax Lien on my home.

5. Inasmuch as these alleged taxes date back to 1989 and 1990, we must obviously begin to examine the implications of the Statute of Limitations to which the IRS is subject, all the more so since I never signed a Waiver of this Statute. This Statute, in and of itself, would negate the already questionable validity of the Lien placed on my residence.

In light of the five foregoing points, and those exhaustively described in the accompanying dossier, I challenge the IRS to either (1) produce documentary evidence of my alleged ownership of Aguirre-Donojean properties which lie at the basis of this unconscionable Federal Lien Action, of 18 months standing, against my constitutionally protected home or (2) lift the Lien forthwith.

Failure to respond in a timely manner to this request, which is also being submitted to the Las Cruces IRS Office, will entail legal action against the IRS by a tax lawyer whom I shall retain to properly defend my vital and clearly violated interests.

Sincerely yours,