Posted: Jun 27, 2005 By: Liles & Naomi Garcia

Subject: US Air Force Veteran shelled by ISO-AMT, forced into indentured servitude by the very nation he served. When is enough, enough?!

Comment:

20215 SW Carlin Blvd
Aloha, OR 97007-4228

June 22, 2005


To Honorable Chairman William M. Thomas and House Ways and Means
Committee - Tax Reform Hearing

Dear Chairman Thomas and Committee Members:


We are Liles and Naomi Garcia and we are homeowners. Liles was in the Air Force for four years, and has worked for three
high-technology companies for a total of thirty years. Naomi has worked for a high-technology company, Tektronix, for
Thirty-two years.

When Liles was working for PMC-Sierra, Inc, the company gave him some stock options which often occurs in high technology companies. At the end of September, 1999, PMC-Sierra laid off some employees and Liles was terminated at this layoff. There was no warning of the PMC-Sierra layoff; it was a complete surprise. Because of the layoff termination, Liles had to purchase his stock options within a short period of
time or else lose them. At that time the stocks were worth about $965,000.00, and when Liles purchased his stock, we
unknowingly incurred a $273,000 Alternative Minimum Tax. We have been doing our own income taxes for many years, and did not know what the AMT was.

We submitted an Offer-in-Compromise to the IRS in July, 2001. The IRS rejected our OIC and an OIC Appeals Officer told us
that he would only settle for the entire amount. This decision devastated both of us because of the large amount that we will be required to pay. We are currently making monthly payments to the IRS, but we still owe more money than we will ever be able to pay. The IRS can take everything that we have through their collection process. To us, this does not seem right. Many thanks for any help that your committee can give us.


Sincerely,
Liles and Naomi Garcia
Oregon’s 1st Congressional District