Douglas W. and Gail Caple - Page 12




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          penalties applied under section 6662--was not properly abated and           
          adjusted in accordance with the agreement they reached with                 
          respondent’s Problem Resolution Office.  We will first consider             
          the merits of these arguments.                                              
          Petitioners’ Right To Contest the Underlying Liability                      
               The Court’s jurisdiction to redetermine a deficiency depends           
          upon the issuance of a valid notice of deficiency and the timely            
          filing of a petition for redetermination.  Levitt v.                        
          Commissioner, 97 T.C. 437, 441 (1991).  Assuming the Commissioner           
          has issued a valid deficiency notice, section 6213(a) provides in           
          pertinent part that the taxpayer must file a petition with the              
          Court within 90 days of the mailing of the deficiency notice.               
               Respondent mailed a deficiency notice to petitioners on                
          December 6, 1996.  It is undisputed that petitioners received               
          this notice in due course.  Petitioners failed to file a petition           
          for redetermination within 90 days of the date the notice was               
          mailed.  Because petitioners’ reasons as to why they did not file           
          a petition are irrelevant,11 we hold that petitioners are not               
          entitled to raise as an issue their underlying tax liability.               

               11 Petitioners admit their timely receipt of the notice.               
          They stated that the declining health of Mr. Caple’s father, and            
          other factors, left them unable to deal with the situation.                 
          “Once respondent places the deficiency notice within the                    
          taxpayer’s grasp * * * [in ample time to file a petition with the           
          Tax Court, respondent] satisfies the requirement of section 6212;           
          if the taxpayer turns a blind eye to that information, she does             
          so at her own peril.”  Patmon & Young Profl. Corp., T.C. Memo.              
          1993-143, affd. 55 F.3d 216 (6th Cir. 1995).                                






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