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penalties by August 1995. In so contending, petitioner claims to
fall within section 301.6404-2T, Example (2), Temporary Proced. &
Admin. Regs., supra.7 The example provides that, where an
examination of a taxpayer’s return has revealed a deficiency, the
issuance of a notice of deficiency is a ministerial act “After
the taxpayer and the Internal Revenue Service have identified all
agreed and unagreed issues, the notice has been prepared and
reviewed (including review by District Counsel, if necessary) and
any other relevant prerequisites have been completed”. Id.
Petitioner’s 1989 amended return, reporting the previously
unreported income upon which the fraud penalty was based, had not
even been submitted to respondent in August 1995. It was not
submitted until July or August 1996, by which time civil action
for the years 1989 through 1993 had been suspended.
While petitioner’s amended return for 1990 had been
submitted in February 1995, before the suspension of civil
action, petitioner has not shown that a notice of deficiency for
1990 had been prepared or reviewed, or that all other relevant
prerequisites for its issuance had been completed, before the
suspension of civil action in December 1995. Once civil action
was suspended to facilitate development of the criminal case
against petitioner, the delay in taking actions in the civil
cases for 1989 and 1990, including any delay in issuing a notice
7 See supra note 5.
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