Anthony M. Davich - Page 7

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          determined deficiencies, addition to tax, and accuracy-related              
          penalty, as well as statutory interest.  On that same day,                  
          respondent sent petitioner notices of balance due, informing him            
          that he had liabilities for 1997 and 1998 and requesting that he            
          pay them.  Petitioner failed to pay the amounts owing.                      
               By certified letter dated May 19, 2000, petitioner wrote to            
          respondent’s Service Center in Ogden, Utah, acknowledging receipt           
          of the notices of balance due dated May 8, 2000.  In his letter,            
          petitioner stated, in part, as follows:                                     
                    This is in reply to your unsigned letters of May                  
               8, 2000 (attached) in which you notified me that “We                   
               changed your account(s)”.                                              
                    This letter is to put you on notice that there is                 
               no Code Section in the Internal Revenue Code that                      
               authorizes the IRS [to] “change” returns or “accounts”.                
                    Income tax is based on “self-assessment”--see                     
               Treasury Reg. [�]601.103.  “Our income tax system is                   
               voluntary and the Internal Revenue Service must                        
               perforce rely on the self-assessment of the taxpayer.”                 
               * * *                                                                  
                    Thus it is clear from all of the evidence above                   
               that ONLY I can make a “self-assessment” concerning                    
               what my income tax liability might be for 1997 and                     
               1998.  Since I concluded that my 1997 and 1998 income                  
               tax liability is “zero” for those years, I did not                     
               “self-assess” myself with any income tax liability for                 
               those years; therefore, no income tax liability is                     
               shown on my 1997 or 1998 returns.  This being the case                 
               and in conformity with the meaning of a TC 150,[3] no                  
               income tax liability can be assessed from my 1997 or                   

               3  “TC 150" refers to transaction code 150 in respondent’s             
          computerized transcript of account.  TC 150 represents the                  
          assessment of tax as reported by a taxpayer on the taxpayer’s               

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