David Andrew and Kathleen Stilwell Schmith - Page 16




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          accuracy-related penalty determined in the notice of deficiency.            
          A notice of balance due constitutes a notice and demand for                 
          payment within the meaning of section 6303(a).  See, e.g., Hughes           
          v. United States, 953 F.2d 531, 536 (9th Cir. 1992); Newman v.              
          Commissioner, T.C. Memo. 2002-132; Weishan v. Commissioner,                 
          supra; see also Hansen v. United States, 7 F.3d 137, 138 (9th               
          Cir. 1993).  Notably, petitioners acknowledged receipt of the               
          notice of balance due dated November 20, 2000, in their letter              
          dated December 20, 2000.  See supra pp. 5-6.                                
               Petitioners have failed to raise a spousal defense, make a             
          valid challenge to the appropriateness of respondent’s intended             
          collection action, or offer alternative means of collection.7               
          These issues are now deemed conceded.  Rule 331(b)(4).  In the              
          absence of a valid issue for review, we conclude that respondent            
          is entitled to judgment as a matter of law sustaining the notice            
          of determination dated September 20, 2001.                                  
               B.  Imposition of a Penalty Under Section 6673                         
               We turn now to respondent’s oral motion for the imposition             
          of a penalty on petitioners under section 6673.                             



               7  Petitioner David Andrew Schmith stated to the Appeals               
          officer at the administrative hearing on Aug. 21, 2001, that                
          “I’ll get my checkbook” and “I’ve offered to pay as long as you             
          show me the law that requires me to pay.”  The statutory                    
          citations sought by petitioner are identified supra p. 13 of this           
          opinion.                                                                    







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