Fred Deutsch - Page 4

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              The Forms 4549 state:  “I do not wish to exercise my appeal             
         rights with the Internal Revenue Service or to contest in the                
         United States Tax Court the findings in the report.”                         
              On January 27, 2004, respondent mailed to petitioner a Final            
         Notice, Notice of Intent to Levy and Your Right to a Hearing                 
         Under IRC 6330 for 1995, 1996, and 1997 (the levy notice).  In               
         response to the levy notice, petitioner’s counsel Ira B. Stechel             
         (Mr. Stechel) on behalf of petitioner submitted to respondent a              
         timely Form 12153, Request for a Collection Due Process Hearing.             
         On the Form 12153, Mr. Stechel explained that petitioner did not             
         agree with the levy because:                                                 
              The amounts reflected as the taxpayer’s liabilities for                 
              the tax years in question are incorrect and have been                   
              substantially reduced upon administrative review by the                 
              Service.  In addition, the taxpayer will shortly file                   
              returns for the years in question which will supersede                  
              the substitutes for return prepared by the Service for                  
              the taxpayer’s 1995 and 1996 taxable years and which                    
              will amend the taxpayer’s return for his taxable year                   
              1997, which returns will claim net operating loss                       
              carryforwards and carrybacks and passive loss                           
              carryforwards that are anticipated to eliminate much,                   
              if not all, of the liabilities assessed against the                     
              taxpayer for these years.                                               
              By letter dated July 15, 2004, respondent advised petitioner            
         that his case had been assigned to Appeals Officer Joan Azim of              
         respondent’s Appeals Office in Manhattan, New York.                          
              On August 30, 2004, petitioner filed tax returns for 1995               
         and 1996 that reported taxes due of $19,096 and $14,334,                     
         respectively, and an amended return for 1997 that reported an                






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