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the statutory notice of deficiency was issued to petitioners on
May 9, 1997. Sec. 7430(c)(7)((B).3 Specifically, in the notice
of deficiency respondent determined that petitioners had
unreported gross income of $156,931 from an IRA distribution
received from American Express in 1994. Respondent took a
position in the proceeding in this Court when respondent's answer
was filed on September 11, 1997. See Huffman v. Commissioner,
supra at 1148. In the answer, respondent denied petitioners'
allegation that they did not receive an unreported IRA
distribution in the amount of $156,931 in 1994.
We analyze the Government's position on the date of the
notice of deficiency in the context of what caused the Government
to take that position. Lennox v. Commissioner, 998 F.2d 244,
247-249 (5th Cir. 1993), revg. in part and remanding T.C. Memo.
1992-382.4 This analysis may include events preceding the date
3 An administrative proceeding is defined as any procedure or
other action before the Internal Revenue Service. Sec.
7430(c)(5). Sec. 7430(c)(7)(B) provides that the United States
takes a position in an administrative proceeding as of the
earlier of the date of the receipt by the taxpayer of the notice
of the decision of the Internal Revenue Service Office of
Appeals, or the date of the notice of deficiency. In the instant
case, no notice of decision of the Internal Revenue Service
Appeals Office was ever issued or received by petitioners prior
to the date of the notice of deficiency. Accordingly, the United
States took a position on the date the notice of deficiency was
issued.
4 Venue for appeal in this case lies to the Court of Appeals
for the Fifth Circuit. Accordingly, precedent from that
jurisdiction controls our analysis of the issues. Golsen v.
Commissioner, 54 T.C. 742, 757 (1970), affd. 445 F.2d 985 (10th
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