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The check was returned to the former employer. In 1998, the
check was re-issued to petitioner by his former employer.
Petitioner accepted the 1998 check. A notation on the bottom of
the statement attached to the check indicated that "taxes applied
to 1996 earnings".
The Internal Revenue Service (IRS) received a Form W-2, Wage
and Tax Statement, which indicated that the employer paid
petitioner $4,889.98 in 1996. This information became the basis
of the 30-day letter issued to petitioner on September 23, 1998.
On October 16, 1998, petitioner responded to the letter and
enclosed a copy of the second check, written by his former
employer in 1998. On November 24, 1998, respondent asked
petitioner to get a corrected Form W-2 from his employer.
Respondent needed further verification because respondent did not
consider the 1998 check to be proof that the 1996 check had been
an accord and satisfaction and had never been cashed. Petitioner
replied on December 1, 1998, and stated that he wanted answers
before he would sign anything or would do what he considered to
be the IRS' function. Absent further verification from
petitioner, the notice of deficiency was issued on February 3,
1999.
When petitioner met with respondent, he was able to show the
facts necessary for respondent to concede the issue. However,
petitioner would not sign the stipulation of settled issues
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