Gregory Powell & Araminta D. Morton - Page 6

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          jurisdiction because the petition was not filed within the time             
          provided by sections 6213(a) and 7502.  In contrast, petitioners            
          contend that the notice of deficiency was rescinded and                     
          supplanted by the revised examination report dated June 4, 1997,            
          and that their petition was timely filed when measured from the             
          date of mailing of such report.                                             
               Petitioners' contention that the notice of deficiency was              
          rescinded is similar to an argument that the Court considered and           
          rejected in Slattery v. Commissioner, T.C. Memo. 1995-274.  In              
          Slattery, we declined to find that the notice of deficiency had             
          been rescinded as follows:                                                  
                    We now turn to the question of whether the notice                 
               of deficiency was rescinded.  Section 6212(d) provides                 
               that the Secretary may, with the consent of the                        
               taxpayer, rescind any notice of deficiency mailed to                   
               the taxpayer.  Clearly, the statute requires mutual                    
               consent by the Secretary and the taxpayer to effect a                  
               rescission of a notice of deficiency.4  We know of no                  
               authority deeming a notice of deficiency rescinded in                  
               absence of a formal rescission.  While the facts                       
               presented herein may suggest that respondent considered                
               a rescission, she did not consent to a rescission.                     
               Returning a case file from the 90-day section of                       
               respondent's office to the examination division for                    
               purposes of a conference is not tantamount to a                        
               rescission, even though the conference, due to                         
               miscommunication, was eventually scheduled for a date                  
               subsequent to the running of the 90-day period.                        
               Accordingly, we conclude that the notice of deficiency                 
               involved herein was not rescinded pursuant to section                  
               6212(d).                                                               
               _________________                                                      
                    4 The Internal Revenue Service has provided                       
               guidance to taxpayers wishing to consent to the                        
               rescission of a notice of deficiency.  See Rev. Proc.                  
               88-17, 1988-1 C.B. 692.  This revenue procedure                        
               requires the taxpayer to request Form 8626, Agreement                  




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