David and Barbara Kincaid - Page 5




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               On March 19, 1996, petitioners' daughter wrote to Loren                
          Peterson (Peterson), respondent’s Appeals officer, to ask how               
          much respondent claimed petitioners owed for 1979 and 1982                  
          including taxes, interest, and penalties.                                   
               On March 23, 1996, petitioners filed with the Ogden Service            
          Center a request to abate interest (Form 843) that had accrued on           
          their tax liabilities for 1979 and 1982.  On May 3, 1996, the               
          Ogden Service Center notified petitioners that their request for            
          abatement was being sent to Andover, Massachusetts, for                     
          processing.  On June 19, 1996, petitioners received a telephone             
          call from Larry Landon (Landon) of the Andover Service Center.              
          Landon said that their request for abatement would be handled by            
          respondent's Phoenix Appeals office.                                        
               On June 20, 1996, petitioners’ daughter wrote Peterson to              
          ask whether petitioners' request for abatement should be handled            
          by his office.  She asked Peterson for copies of all documents              
          relating to petitioners' 1979 and 1982 taxes, especially                    
          pertaining to Signature and Encoder.  On July 12, 1996,                     
          petitioner met with Peterson.                                               
               On November 22, 1996, petitioners signed a second request              
          for abatement of interest (Form 843) for their 1979 and 1982                
          years.                                                                      
               A notice of trial on December 9, 1996, was served on                   
          September 18, 1996.  On December 9, 1996, the parties reported              






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