James D. Horn - Page 27




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               Petitioner has not offered any credible evidence to persuade           
          us he was mentally incompetent when he signed the returns for the           
          later years 1994 and 1996.  Insofar as petitioner challenges the            
          assessments for 1994 and 1996 on the ground he was incompetent              
          when he signed and filed the returns, we reject petitioner’s                
          challenge on the same grounds on which we have upheld the                   
          validity of the Forms 4549-CG for 1990 and 1991, 1992, and 1993.            
          In so doing, we do no more than assume without deciding that the            
          assessments could be invalidated if petitioner had been                     
          incompetent when he signed and filed the returns.                           
               We now turn to petitioner’s contention that section                    
          6330(c)(2)(B) entitles him to challenge respondent’s assessments            
          of the tax liabilities shown on his 1994 and 1996 returns because           
          he received no statutory notice of deficiency for such                      
          liabilities and did not otherwise have an opportunity to dispute            
          them.  Respondent contends petitioner cannot challenge the                  
          validity or amount of the underlying tax liabilities he reported            
          for 1994 and 1996 because the assessments were based on                     
          petitioner’s own returns.10  The only legal argument respondent             


               10We note that, after respondent’s brief was filed, the                
          Internal Revenue Service published additions to the Internal                
          Revenue Manual instructions to Appeals officers in section 6330             
          collection proceedings that would appear to contradict                      
          respondent’s litigation position in this case with respect to               
          1994 and 1996.  4 Administration, Internal Revenue Manual (CCH),            
          sec. 8.7.2.3.8, at 27,286 provides in part:                                 
                                                             (continued...)           





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