Robert Ho - Page 19

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          petitioner may raise this issue in this proceeding,11 we conclude           
          that he would not prevail on the merits.                                    
               Generally, interest on a Federal income tax liability begins           
          to accrue from the last date prescribed for payment of that tax             
          and continues to accrue, compounding daily, until payment is                
          made.  Secs. 6601(a), 6622.  Section 6601(g) further allows                 
          respondent to assess and collect interest at any time during the            
          period within which the underlying tax may be collected.  See               
          sec. 301.6601-1, Proced. & Admin. Regs.  The manner of assessing            
          interest is the same as assessing tax; that is, interest is                 
          assessed by recording the liability of the taxpayer in the office           
          of the Secretary in accordance with rules or regulations.  Sec.             
          6203.  Unlike the assessment procedure for income taxes, however,           
          a notice of deficiency is not required before assessing                     
          interest.12  See sec. 6213(a).  In sum, a taxpayer is liable for            

               11  Generally, the right to challenge the existence and                
          amount of underlying tax liability encompasses the right to                 
          challenge the existence and amount of disputed interest thereon.            
          Urbano v. Commissioner, 122 T.C. 384, 389-390 (2004).  The facts            
          in Urbano, however, are distinguishable from the present case.              
          In Urbano, the taxpayers did not receive a notice of deficiency             
          because they waived their right to contest the findings in Form             
          4549.  Form 4549, however, did not include a finding with respect           
          to disputed interest.  In their sec. 6320 hearing, the taxpayers            
          challenged their liability for sec. 6601 interest and claimed               
          interest abatement.  Under the facts of that case, the Court held           
          that we had jurisdiction to redetermine interest.                           
               12  As applicable herein, sec. 6213(a) applies to the                  
          assessment of a deficiency in respect of any tax imposed by                 
          subtitle A (income taxes).                                                  

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