Ingo H. Jensen - Page 11




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          exhaustion of administrative remedies requirement of section 7430           
          despite not having requested an Appeals conference.                         
          The taxpayer responded in writing to the Commissioner’s 30-day              
          letter setting forth her arguments and providing substantiation.            
          She kept up a continuous dialog with the Commissioner in an                 
          attempt to settle the matter and filed a petition with the Tax              
          Court only after the Commissioner failed to cooperate.  We found            
          that the taxpayer had exhausted her administrative remedies                 
          because of her ongoing dialog with the Commissioner, the                    
          Commissioner’s failure to respond to several of her letters, the            
          Commissioner’s filing of a notice of deficiency in the middle of            
          the negotiations process, and her lack of reason to believe that            
          the negotiations had reached an impasse.  See id.                           
               The facts in Cole are distinguishable from those in this               
          case.  Petitioner ignored the 30-day letter, delayed providing              
          requested documentation, and rejected respondent’s offer of a               
          post-petition Appeals conference.  Meanwhile, respondent stood              
          by, ready, willing, and able to proceed with settlement                     
          discussions.  If petitioner had acted promptly, this matter could           
          have been resolved shortly after petitioner received the 30-day             
          letter.  This is not conduct that we condone.  See Uddo v.                  
          Commissioner, T.C. Memo. 1998-276.                                          










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