James D. and Rita K. Snyder - Page 18




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          from being made until either the expiration of the 90 (or 150)              
          days or after the decision of the Tax Court becomes final.  That            
          procedure provides an opportunity for a taxpayer to have his or             
          her tax liability reviewed by the Tax Court before an assessment            
          is made.  Petitioners’ argument is without merit.                           
                    c.  Audit Level Procedures                                        
               Petitioners argue that they were deprived of due process               
          because respondent allegedly did not follow administrative                  
          procedures during the audit of their returns.                               
               Proceedings before the Tax Court are de novo; therefore, our           
          determination of a taxpayer’s liability is based on the merits of           
          the case and not on the record developed at the administrative              
          level.  Greenberg’s Express, Inc. v. Commissioner, 62 T.C. 324,             
          327-328 (1974); Johnston v. Commissioner, T.C. Memo. 2000-315.              
          There is no statutory requirement that respondent must follow               
          certain administrative procedures prior to issuing a notice.                
          Further, this Court has held that a revenue agent’s failure to              
          follow administrative procedures prior to issuance of a notice of           
          deficiency does not invalidate the notice.  See, e.g., Guilford             
          v. Commissioner, T.C. Memo. 1987-535 (lack of appellate                     
          conference or 30-day letter does not affect the validity of                 
          notice).  In any event, petitioners failed to prove any                     
          irregularities in respondent’s examination.                                 
               B.  Discussion                                                         






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