Ingo H. Jensen - Page 10

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          retain counsel until a month after this deadline had passed.                
          Then, after retaining counsel, petitioner continued to ignore the           
          30-day letter.  It was not until respondent mailed the notice of            
          deficiency, more than 2 months after the deadline set forth in              
          the 30-day letter and more than a month after petitioner had                
          retained counsel, that petitioner made any attempt to contact               
               Petitioner argues that pursuing the Appeals remedy would               
          have been futile.  See Phillips v. Commissioner, 88 T.C. 529                
          (1987), affd. in part and revd. in part on other grounds 851 F.2d           
          1492 (D.C. Cir. 1988).  In Phillips the taxpayer was unaware of             
          the issue until after his case was docketed in the Tax Court.               
          Furthermore, we found that the Commissioner’s insistence on                 
          pursuing the matter through litigation and the refusal to                   
          consider the effect of his own revenue rulings “demonstrate[d]              
          that any discussion of this issue that petitioner attempted was             
          futile.”  Id. at 533.  But there is no suggestion here that                 
          respondent’s mind was closed and that development of the case               
          through the administrative Appeals process would have been                  
          unproductive.  The fact is that petitioner never attempted to get           
          the matter settled before the case was calendared for trial.                
               Petitioner also cites Cole v. Commissioner, T.C. Memo. 1996-           
          375.  In Cole we found that the taxpayer had satisfied the                  

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