U.R. Neely - Page 2




                                                - 2 -                                                  
                                               OPINION                                                 
                  VASQUEZ, Judge:  Respondent issued to petitioner a notice of                         
            determination concerning worker classification.  Petitioner                                
            contends that such determination was time-barred under section                             
            6501(a).1  Respondent contends that the period of limitations on                           
            assessment remains open, pursuant to section 6501(c), on account                           
            of petitioner’s fraudulent conduct.  The Court, sua sponte,                                
            questioned whether we have jurisdiction to address these                                   
            arguments in the context of a case brought under section 7436.                             
            For reasons discussed below, we hold that we possess such                                  
            jurisdiction.                                                                              
            Background                                                                                 
                  During 1992, petitioner operated a sole proprietorship (the                          
            company) whose principal place of business was in Mesa, Arizona.2                          
            Petitioner resided in Phoenix, Arizona, at the time the petition                           
            herein was filed.                                                                          
                  On June 11, 1998, respondent mailed to petitioner a Notice                           
            of Determination Concerning Worker Classification Under Section                            
            7436, in which respondent determined that three individuals who                            
            performed services for the company during 1992 (the workers) were                          



                  1  Unless otherwise indicated, all section references are to                         
            the Internal Revenue Code, and all Rule references are to the Tax                          
            Court Rules of Practice and Procedure.                                                     
                  2  At trial, petitioner testified that he no longer owned                            
            the company.  The record does not reflect, however, when                                   
            petitioner’s ownership interest terminated.                                                




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