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being filed voluntarily but out of fear of illegal governmental
prosecution; (3) the “Privacy Act Notice” contained in the Form
1040 booklet informed petitioners that they are not required to
file a return; (4) laws requiring taxpayers to provide
information to the Federal Government violate taxpayers’ Fifth
Amendment rights; (5) courts have held that a Form 1040 with
zeros inserted in the spaces provided qualifies as a tax return;
(6) petitioners had zero income according to the Supreme Court’s
definition of income; (7) petitioners’ 1997 tax return does not
constitute a “frivolous” return for purposes of section 6702; and
(8) no statute allows the IRS to change petitioners’ tax return.
On August 13, 1998, respondent mailed a statutory notice of
deficiency to petitioners. In the notice, respondent determined
a corrected taxable income of $1,088,854, a deficiency of
$408,247, a section 6651(a)(1) failure-to-file addition to tax of
$40,824.70, and a section 6662 accuracy-related penalty of
$81,649. Petitioners received the notice but did not file a
petition with this Court for a redetermination of the deficiency
pursuant to section 6213. Consequently, respondent issued a
Final Notice--Notice of Intent to Levy and Notice of Your Right
to a Hearing, informing petitioners of respondent’s intent to
levy and of petitioners’ right to a hearing before respondent’s
Appeals Office pursuant to section 6330. In response,
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