-11-
1963). Delegation Order No. 57 (Rev. 9) (Oct. 2, 2000) delegates
authority to sign written notification of a second inspection to
various Internal Revenue Service officials, including Large and
Mid-Size Business Division territory managers.
Here, respondent sent petitioners a letter signed by Bill
Marx, the acting Large and Mid-Size Business Division territory
manager, dated January 2, 2002. The letter notified petitioners
that respondent intended to reexamine their books and records
because “information that may affect your tax liability has been
developed since we last examined your books and records”.
Respondent has complied with the requirements of section 7605(b)
that the taxpayer be notified in writing that an additional
inspection is necessary. Therefore, respondent was not precluded
from reexamining petitioners’ records for 1998 and issuing a
second notice of deficiency.
Section 6212(c)(1) states that respondent “shall have no
right to determine any additional deficiency of income tax for
the same taxable year * * * except in the case of fraud” if
respondent has mailed a notice of deficiency under section
6212(a) “and the taxpayer files a petition with the Tax Court
within the time prescribed”. Hemmings v. Commissioner, 104 T.C.
221, 226-228 (1995).
We find that the second notice of deficiency, dated August
28, 2002, for petitioners’ 1998 tax year, is not precluded under
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