sounds like harassment... they can't tax him if he didn't sell... however, they can hassle him and force him to incurr legal fees and waste time proving that he didn't sell...
and while i can certainly understand how he feels about the IRS, i wonder whether the system is looking for just this type of reaction... a good way to get rid of people who actually understand the injustice of the system, and demonize this type of person even more in the eyes of the masses... really hard to say, but certainly seems true, they can ruin you even if you did nothing wrong... by simply making you defend yourself. isn't it great to live in a free country?