Michael W. Bethea - Page 3

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          Respondent then applied the reported $19,752.11 in estimated tax            
          and withholding credits as follows:                                         
               1997 income tax liability                    $476.00                   
               Credited to unpaid balance on 1988 income tax  8,564.17                
               Credited to unpaid balance on 1989 income tax  7,417.17                
               Refunded to petitioner                       3,294.77                  
               Thereafter, on November 19, 1999, respondent issued to                 
          petitioner a notice of deficiency for the 1997 year.  The notice            
          reflected a deficiency of $23,909, stemming from $65,245 in                 
          unreported income shown on Forms 1099, and an accuracy-related              
          penalty under section 6662(a) of $4,782.  In response, petitioner           
          mailed to respondent a letter dated January 28, 2000,                       
          acknowledging his right to file a petition with the Tax Court but           
          stating, among other things:  “Before I file, pay, or do anything           
          with respect to this ‘Notices’ I must first establish whether or            
          not it was sent pursuant to law, whether [sic] not is [sic] has             
          the ‘force and effect or [sic] law,’ and whether (GWEN A. KRAUSS)           
          Director of the IRS Service Center had any authority to send me             
          the Notice in the first place.”                                             
               Petitioner did not file with the Court a petition contesting           
          the deficiency notice.  On April 17, 2000, respondent assessed              
          the $23,909 deficiency and the $4,782 penalty, as well as                   
          $4,920.09 of interest, and sent to petitioner a notice of the               

               2(...continued)                                                        
          the $476 assessment is not before us.  We therefore construe                
          petitioner’s arguments as pertaining solely to the subsequent               
          assessment discussed hereafter.                                             





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