James E. Anderson and Cheryl J. Latos - Page 14

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          should have considered and reviewed the merits of the underlying            
          1995 tax liability because (1) respondent did not offer them the            
          opportunity of an Appeals conference after the first notice of              
          deficiency was rescinded and (2) petitioners did not receive the            
          second notice of deficiency for 1995.                                       
               At the outset, we must note that petitioners acknowledged              
          receipt of the second notice of deficiency, and respondent’s                
          employees specifically cautioned them in writing to petition this           
          Court if they wished to appeal respondent’s determination.                  
          However, petitioners failed to file a petition in response to the           
          second notice in which respondent determined a self-employment              
          tax deficiency for 1995.  Under section 6330(c)(2)(B) petitioners           
          are specifically precluded from questioning the merits of the               
          underlying tax liability for 1995 because they failed to petition           
          from respondent’s determination.                                            
               Petitioners also contend that respondent should have                   
          provided them with Appeals consideration of their 1995 tax year             
          after the issuance and rescission of the first notice.  In that             
          regard, respondent agreed to, and, did rescind the first notice             
          of deficiency, and after about 4 months, a second notice was                
          issued.  Petitioners sought to meet with Appeals, but the record            
          is silent on whether they were afforded Appeals consideration               
          after rescission of the January notice and issuance of the May              
          notice.  Even if respondent had not provided petitioners with an            






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