Bernhard F. and Cynthia G. Manko - Page 7

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          329, 338-339 (2000).  Respondent has assessed and proposes to               
          collect Federal income taxes for 1988 and 1989 attributable to              
          adjusting the Comco items reported on petitioners’ returns.  We             
          generally have jurisdiction to redetermine deficiencies in income           
          taxes and related additions to tax.  See secs. 6211, 6213(a),               
          6214(a); see also Goza v. Commissioner, 114 T.C. 176, 182 (2000).           
          We therefore have jurisdiction to review the determination notice           
          in this case.  See Katz v. Commissioner, supra at 339.                      
               Where the underlying tax liability is at issue in a                    
          collection action, we review the determination de novo.  Sego v.            
          Commissioner, 114 T.C. 604, 610 (2000).  Where the underlying               
          liability is not at issue, we review the determination for an               
          abuse of discretion.  Goza v. Commissioner, supra at 181-183.               
          The key facts are fully stipulated and described in the                     
          determination notice.  Where, as here, we are faced with a                  
          question of law (e.g., whether the Commissioner must issue a                
          deficiency notice before assessing taxes when a closing agreement           
          covers the treatment of certain items on a return for that year),           
          our holding does not depend on the standard of review we apply.             
          We must reject erroneous views of the law.  See Kendricks v.                
          Commissioner, 124 T.C. 69, 75 (2005) (and the cases cited                   
          therein); McCorkle v. Commissioner, 124 T.C. 56, 63 (2005).                 









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