William B. Meyer - Page 9




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            Petitioners do not dispute either point.  However, they contend                            
            that the cases should be dismissed on a third ground; i.e., that                           
            the determination letters are invalid.                                                     
                  There is no dispute that the Court lacks jurisdiction in                             
            these cases.  Because the basis for dismissal may affect whether                           
            respondent may proceed with collection, we are obliged to                                  
            determine the proper ground for dismissal.  Assuming that                                  
            respondent failed to issue valid determination letters, we will                            
            dismiss the cases on that basis, rather than on either of the                              
            alternative grounds upon which respondent's motions are based.                             
            See, e.g., Pietanza v. Commissioner, 92 T.C. 729, 735-736 (1989),                          
            affd. by unpublished opinion 935 F.2d 1282 (3d Cir. 1991).                                 
                  The Court has not previously considered the elements                                 
            necessary for a valid determination letter under section 6330.                             
            Suffice it to say, section 6330(b) contemplates that an Appeals                            
            Office hearing, if duly requested by the taxpayer, must precede                            
            the issuance of a determination letter.  See Offiler v.                                    
            Commissioner, supra.  Section 6330(b)(1) plainly states that if a                          
            taxpayer "requests a hearing under subsection (a)(3)(B), such                              
            hearing shall be held by the Internal Revenue Service Office of                            
            Appeals."                                                                                  
                  In Katz v. Commissioner, 115 T.C. __, ___ (2000)(slip op. at                         
            14-15), we recently held that the Commissioner had complied with                           
            the hearing requirement under section 6330(b)(1) by offering the                           






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