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assessment or that respondent ever made an assessment relative to
this distribution. The payments and credits on the transcripts
reflect payment of the tax liabilities reported on the returns
including interest and penalties, and the transcripts reflect no
amounts in excess of the tax liabilities for the 2 years as
reported on petitioners' income tax returns. Respondent's
position is that the tax due on the IRA distribution was not
assessed, and, since petitioners instituted this action,
respondent is precluded from making an assessment.
The Court agrees with respondent that the transcripts of
petitioners' accounts for 2000 and 2001 do not reflect an
assessment of the deficiency attributable to the IRA distribution
to petitioners.
Generally, no assessment or collection of a deficiency in
tax can be made against a taxpayer until there is mailed to the
taxpayer a notice of deficiency under section 6212(a). Once a
notice of deficiency is issued, and the taxpayer files a timely
petition with this Court, the restrictions on assessment and
collection generally continue until such time as the decision of
this Court becomes final. Any premature assessment or collection
of a deficiency may be enjoined by a proceeding in a proper
court, including the Tax Court. Sec. 6213(a).
The restrictions on assessment and collection do not apply
in certain situations set out in section 6213(b), (c), (d), and
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Last modified: May 25, 2011