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respondent’s determination of self-employment tax. There is no
statutory or case precedent that would support such a
recharacterization under these circumstances.
There is no question that respondent, in response to the
problem resolution officer’s recommendation, reduced petitioners’
1995 self-employment tax liability to approximately one-half,
which is the equivalent of the employee’s portion of that tax.
Those actions by respondent and the problem resolution officer,
however, do not constitute a change in the character of the
underlying determination. It should be noted that respondent may
assess employment tax without providing taxpayers with a
deficiency notice or an opportunity for a prepayment forum to
dispute respondent’s employment tax determination. See sec.
6205(b).
Under certain circumstances, as prescribed in section 7811,3
the National Taxpayer Advocate may issue a Taxpayer Assistance
order which may be binding on the IRS. Sec. 301.7811-1(c)(2),
Proced. & Admin. Regs. Section 7811(b) provides that such
Taxpayer Assistance orders may require the Secretary to release
property that has been levied upon or to cease or refrain from
3 The Taxpayer Assistance Order was a concept provided for
in the Taxpayer Bill of Rights, Technical and Miscellaneous
Revenue Act of 1988, Pub. L. 100-647, sec. 6230(a), 102 Stat.
3733, which was signed into law on Nov. 10, 1988, and became
effective Jan. 1, 1989. 6 Administration, Internal Revenue
Manual (CCH), sec. 13.1.1.1.1, at 40903 (2000).
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