David H. Zimmer and Carolyn J. Zimmer v. William H. Connett, District Director, Internal Revenue Service, Joseph Vallerand and Roberta W. Vallerand v. William H. Connett, District Director, Internal Revenue Service

640 F.2d 208 81-1 USTC P 9223 David H. ZIMMER and Carolyn J. Zimmer, Petitioners-Appellants, v. William H. CONNETT, District Director, Internal Revenue Service, Respondent-Appellee. Joseph VALLERAND and Roberta W. Vallerand, Petitioners-Appellants, v. William H. CONNETT, District Director, Internal Revenue Service, Respondent-Appellee. Nos. 79-3048, 79-3734. United States Court of Appeals, Ninth Circuit. Argued and Submitted Jan. 8, 1981. Decided Feb. 17, 1981. Clyde R. Maxwell, New Port Beach, Cal., on brief; Morgan C. Taylor, New Port Beach, Cal., argued, for petitioners-appellants. M. Carr Ferguson, Washington, D. C., on brief; William A. Whitledge, Washington, D. C., argued, for respondent-appellee. Appeal from the United States District Court for the Central District of California. Before TRASK, SNEED and SCHROEDER, Circuit Judges. SNEED, Circuit Judge: 1 The Internal Revenue Service (I.R.S. or Service), pursuant to 26 U.S.C. § 7605 (b), previously audited taxpayers Zimmer's 1975 joint income tax return and taxpayers Vallerand's 1975 and 1976 joint income tax returns. Thereafter, it notified taxpayers that it found it necessary to reexamine taxpayers' books and records…