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process issue as appropriately before us, petitioner’s position
is without merit.
Section 530(e)(1) provides that the Internal Revenue Service
“shall, before or at the commencement of any audit inquiry
relating to the employment status of one or more individuals who
perform services for the taxpayer, provide the taxpayer with a
written notice of the provisions of this section.” Small
Business Job Protection Act of 1996 sec. 1122(a), 110 Stat. 1766.
On brief, petitioner alleges that it learned of the existence of
Section 530 only through the June 8, 2001, notice of
determination, which postdated by a substantial margin the
commencement in early 1999 of the underlying employment tax
audit. Petitioner then states:
The inaction of Respondent in not providing Petitioner
with the required Section 530(e)(1) notice constitutes
a serious Constitutional violation of due process
rights guaranteed to Petitioner, and Petitioner moves
this Court to allow it to recover its legal fees, since
the conduct against Petitioner by Respondent is so
egregious, and the basis of Respondent’s
reclassification of Dr. Sadanaga as an employee of
Petitioner is totally unreasonable and without merit.
To the extent that petitioner’s due process contentions take
the form of a claim for litigation or administrative costs and
fees under section 7430, such claim is premature. Rule
231(a)(2), as pertinent here, specifies that the appropriate time
to seek recovery of legal costs follows service of a written
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