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deductions in the present section 6330 proceeding, and we are
urged to undertake de novo review under section 6330 of
petitioner's entitlement to those deductions. In respondent's
view, such de novo review should result in petitioner's 1999
liability's being adjusted to reflect an allowance of $7,701.25
of the claimed miscellaneous deduction for legal fees (the amount
that respondent concedes petitioner has substantiated in this
proceeding), reduced pursuant to section 67(a) by an amount equal
to 2 percent of adjusted gross income.
Petitioner contends that he has substantiated the full
$8,528 deduction claimed on the 1999 return and that, in
connection with the examination of his 1999 return, respondent's
agent allowed his claimed deduction for legal fees. The notice
of deficiency for 1999, issued after the notice of intent to levy
for that year, provides some corroboration for petitioner's
claim, in that it allowed $8,935 in miscellaneous deductions
(subject to the 2-percent limitation) without further specifying
the basis for the allowance.23 As to any possible discrepancy in
respondent's treatment of the legal fees deduction in the instant
proceeding and his treatment in the notice of deficiency (and any
consequent inconsistency in the assessment that respondent became
entitled to make when the Freijes defaulted with respect to the
23 As noted, no petition was filed in response to the notice
of deficiency for 1999.
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