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us resolve this matter”, he was referring to this valuation
issue. Similarly, petitioner’s letter dated October 4, 2000,
transmitting petitioners’ 1998 tax return to the Internal Revenue
Service, refers to the same error in the Form 1099-R.
Petitioners’ letter states: “under the circumstances I would
like you to consider all of the above points while reviewing this
situation and confirm to me your finding.” Petitioner’s letter
was again asking the Internal Revenue Service to review the Form
1099-R issued by the ESOP on which petitioner’s shares of J.D.
Edwards & Co. stock were valued as of July 15, 1998, in the
amount of $467,766.10, whereas the net proceeds from the sale of
the stock on November 16, 1998, were $336,022.08.
In none of petitioner’s correspondence with the Internal
Revenue Service does he raise a question about the validity of
the rollover of J.D. Edwards & Co. stock into his IRA or the
Forms 1099-R issued to report the distributions from the IRA in
1999 and 2000. In fact, petitioners’ opening brief states that
they did not become aware “that the ESOP rollover was invalid in
1998 due to the 60 days rollover rule” until the audit of their
1999 and 2000 returns which took place between April and
September of 2004. We reject any suggestion that petitioners
raised with respondent, before the audit of their returns, an
issue concerning the validity of the rollover contribution of
J.D. Edwards & Co. stock to Mr. Kopty’s IRA. In conclusion, we
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