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Part 4. Examining Process

Chapter 8. Technical Support (Exam)

Section 9. Statutory Notices of Deficiency Issued by Area Offices (Cont. 1)

4.8.9  Statutory Notices of Deficiency Issued by Area Offices (Cont. 1)

4.8.9.13  (10-30-2004)
Special Issues

  1. The following includes instructions for issues requiring non-routine treatment when preparing notices of deficiency.

4.8.9.13.1  (12-01-2006)
Accumulated Earnings Tax IRC Section 531

  1. In a proceeding before the Tax Court involving accumulated earnings and profits, the burden of proof as to the allegation that earnings and profits have been permitted to accumulate beyond the reasonable needs of the business is on the Commissioner, unless notification is sent to the taxpayer under IRC section 534(b).

  2. If notification is sent to the taxpayer and (1) the taxpayer timely submits the statement (i.e., the grounds on which the taxpayer relies to establish that there has been no accumulation of earnings and profits beyond the reasonable needs of the business) and (2) such grounds are supported by sufficient facts contained in the statement, then the burden of proof will be on the Commissioner as to the grounds given in the statement. See Treas. Reg. 1.534–2(a)(2), Burden of proof on Commissioner.

  3. Pattern Letter 572 (Exhibit 4.8.9–3) is sent by certified or registered mail to notify the taxpayer. Pattern Letter 572 is issued prior to the issuance of the notice of deficiency unless expiration of the statute of limitations is imminent. Officials delegated to sign notices of deficiency pursuant to Servicewide Delegation Order 4-8 (formerly Delegation Order 77) are also empowered to sign notifications under IRC section 534(b).

  4. The notice of deficiency is prepared using Letter 531 (DO). The following sample paragraphs may be used for the explanation of adjustments in accumulated earnings tax cases.

  5. Statement Filed — Credit for Reasonable Needs

    "It has been determined that your organization was formed or availed of so your shareholders could avoid income tax by permitting earnings and profits to accumulate instead of being divided or distributed during the taxable year ended__. Accordingly, the accumulated earnings tax provided by section 531 of the Internal Revenue Code is being asserted."

    "In determining your accumulated earnings credit under section 535 of the Code, consideration was given to the statement you filed dated-----, in response to the notification sent to you by certified mail on -----, as required by section 534(b) of the Code. That part of your earnings and profits for the taxable year ended--------, which was retained for the reasonable needs of your business, was $------. In figuring your accumulated earnings tax, an accumulated earnings credit of $----- is allowed, as follows: (Insert computation of credit.)"

  6. Statement Filed — Minimum Credit Allowed

    "It has been determined that your organization was formed or availed of so your shareholders could avoid income tax by permitting earnings and profits to accumulate instead of being divided or distributed during the taxable year ended-----. Accordingly, the accumulated earnings tax provided by section 531 of the lnternal Revenue Code is being asserted."


    "In determining your accumulated earnings credit under section 535 of the Code, consideration was given to the statement you filed dated-----, in response to the notification sent to you by certified mail on-----, as required by section 534(b) of the Code."


    "The information shown in your statement is not sufficient to establish that any part of your earnings and profits for the taxable year ended __was kept for reasonable needs of your business. Accordingly, the minimum accumulated earnings credit has been allowed and computed as follows: (Insert computation of credit.)"

  7. No Statement Filed — Minimum Credit Allowed

    "It has been determined that your organization was formed or availed of so your shareholders could avoid income tax by permitting earnings and profits to accumulate instead of being divided or distributed during the taxable year ended -----. Accordingly, the accumulated earnings tax as provided by Section 531 of the Internal Revenue Code is being asserted."


    "In figuring the accumulated earnings tax, the minimum accumulated earnings credit has been allowed and computed as follows: (Insert computation of credit)"


    "Notification was sent to you by certified mail on (date) under section 534(b) of the Internal Revenue Code, but we have no record of a statement in response to the notification as allowed by section 534(c) of the Code."

4.8.9.13.2  (12-01-2006)
Failure to File and Failure to Pay Penalties (Delinquency Penalties)

  1. The portion of the IRC section 6651(a)(1), Failure to File Penalty, and IRC section 6651(a)(2), Failure to Pay Penalty, attributable to the original liability on a delinquently filed return is not subject to deficiency procedures (see IRC section 6665(b)).

  2. The statute of limitations on assessment with respect to the IRC section 6651(a)(1) and IRC section 6651(a)(2) penalties on the original liability runs from the date the delinquent return is filed and is not suspended during Tax Court proceedings.

  3. The provisions contained in (1) and (2), immediately above, do not apply to cases where the notice of deficiency is issued before the taxpayer files a late original return.

  4. A notice of deficiency issued on a "substitute for return, " for returns due after July 30, 1996, must indicate the appropriate IRC section 6651(a) penalty on the letter and waiver.

    1. If the amount of the addition to tax has accrued for the full fifty-month period (25-percent of the amount of the unpaid tax), then the notice of deficiency should reflect the full amount of the addition to tax owed by the taxpayer as per IRC section 6651(a)(2).

    2. If the amount of the addition to tax has not accrued for the full fifty-month period, then the notice of deficiency should not include a dollar amount for the IRC section 6651(a)(2) penalty, but should state that the amount of the addition to tax cannot be determined at this time. The penalty amount will be shown as an asterisk (*) with the explanation that the amount cannot be determined at this time.

    3. The following explanations should be included with the explanations of adjustments. See IRM 4.8.9.6.6, Explanation of Adjustments, above.


    "Since you did not file an income tax return for the taxable year ended___ within the time prescribed by law and you have not shown that your failure to file on time was due to reasonable cause, a penalty of 5 percent per month up to a maximum of 25 percent of the tax is added as provided by section 6651(a)(1) of the Internal Revenue Code."

    Note:

    Substitute 4.5 percent and 22.5 percent for 5 percent and 25 percent, respectively, if IRC section 6651(a)(2) penalty is also being asserted.


    AND, IF IRC SECTION 6651(a)(2) APPLIES


    "Since you have not shown that the underpayment of tax for the taxable year ended __was due to reasonable cause, a penalty of 0.5 percent per month (but not to exceed a total of 25%) is added to the tax from the due date of the return (without regard to extension) until the date of payment as provided by section 6651(a)(2) of the Internal Revenue Code."


    Note:

    The provisions of IRM 4.8.9.13.2 also apply when the failure to file (IRC section 6651(a)(1)) penalty rates are enhanced by IRC section 6651(f) for fraudulent failure to file.


    Caution:

    Before any notice of deficiency is issued in substitute-for-return situations, the preparer of the notice of deficiency must ensure that a valid IRC section 6020(b) return has been prepared for all nonfiled tax periods included in the notice of deficiency. This is necessary for the Service to sustain the assertion of any penalty under IRC section 6651(a)(2). Generally, a valid IRC section 6020(b) return would include the following documents attached together in the order shown below (see IRM 4.12.1, Nonfiled Returns):

    1) A properly completed and signed Form 13496, IRC Section 6020(b) Certification, by an official delegated by Servicewide Delegation Order 182 for each of the nonfiled tax periods included in the notice of deficiency.

    2) A copy of the Form 1040 that was used to post the SFR Transaction Code 150, or beginning with substitutes-for-return established on Master File in January 2004 and thereafter through the new systemic input procedure, a transcript of the taxpayer's account reflecting the substitute-for-return TC 150 posting for each nonfiled tax period

    3) Form 4549 or Form 4549-A, Income Tax Examination Changes, signed by a duly authorized IRS employee and Form 886-A, Explanation of Items, dated on or before the date that the Form 13496 was signed.

    If the notice preparer determines that a valid IRC section 6020(b) return has not been prepared, then he/she must take action to accomplish the preparation and inclusion in the case file of a valid IRC section 6020(b) return for each nonfiled tax period included in the notice of deficiency before any notice of deficiency is issued.

4.8.9.13.3  (12-01-2006)
Open Criminal Cases

  1. If a civil operating division determines that a notice of deficiency is required in an active criminal case, the following procedures apply:

    1. A memorandum (Form 10498-A, Joint Investigations Intent to Commence Civil Action, or Form 10498-B, Joint Investigations Intent to Solicit Consent to Extend Statute, can be used for this purpose) should be submitted to the appropriate Special Agent in Charge (CI) by the Field Territory Manager or the Technical Services Territory Manager, depending upon the location of the case.

    2. The Special Agent in Charge (CI) will consult with Criminal Tax (Counsel) and the Department of Justice in grand jury cases. The Special Agent in Charge (CI) will transmit a concurrence or provide objections to the issuance of a notice of deficiency to the civil operating division. Disagreements as to the conclusions reached by the Special Agent in Charge (CI) will be elevated to the Area Director level, who will discuss the situation with the Director of Field Operations (CI). If agreement is still not achieved, the case will be elevated to the operating division commissioner level and Chief, CI for resolution.

    3. The Pattern Letter at Exhibit 8.17.4–4 and Form 4089–A, Notice of Deficiency Statement, will be used in a notice of deficiency for an open criminal case.

    4. No waiver or agreement permitting the taxpayer to agree to a deficiency will be prepared.

    5. Area Counsel's written approval of the notice of deficiency is required prior to issuance.

    6. A copy of the issued notice of deficiency should be provided to the appropriate Special Agent in Charge (CI).

  2. If only one spouse is liable for the fraud penalty, then separate notices of deficiency are issued. The fraud penalty will be included on the notice for the culpable spouse.

4.8.9.13.4  (12-01-2006)
Civil Fraud Penalty (IRC Section 6663)

  1. If the taxpayer is convicted (after trial or upon guilty plea) of a violation of IRC section 7201, Attempt to Evade or Defeat Tax, the taxpayer is collaterally estopped from denying liability for a civil fraud penalty. Thus, the civil fraud penalty is automatic and it cannot be conceded by Examination if the taxpayer is found guilty (after trial or upon a guilty plea) of evasion charges.

  2. The doctrine of collateral estoppel does not apply if the taxpayer was convicted of a violation of IRC section 7203, Willful Failure to File Return, Supply Information or Pay Tax, or IRC section 7206(1), Declaration Under Penalty of Perjury. Thus, in these circumstances, the civil fraud penalty is not automatic.

  3. For years 1989 and later, the delinquency and fraud penalties can be asserted concurrently. If asserting the IRC section 6651(f), fraudulent failure to file penalty, and the IRC section 6663, fraud penalty, on the same tax period of the taxpayer, see IRM 20.1.5.12.2,Penalty Assertions.

4.8.9.13.5  (12-01-2006)
Alternative to Civil Fraud Penalty

  1. The negligence or accuracy-related penalty (IRC section 6662), and the failure to pay and failure to file penalties, if applicable, should be included in the explanation of adjustments as alternative penalties to the civil fraud penalty except in the following situations.

    • A criminal conviction under IRC section 7201 collaterally estops the taxpayer from denying fraud, or

    • The statute of limitations has expired in the absence of a finding of fraud.

  2. The following alternative penalty explanation for the accuracy-related penalty may be used following the explanation of the civil fraud penalty.

    In the alternative, if it is determined that the underpayment of tax in the amount of $----- for the taxable year ended ----- is not due to fraud, then it is determined that the underpayment of tax in the amount of $----- is due to negligence or disregard of rules or regulations under section 6662(b)(1) of the Internal Revenue Code or the underpayment constitutes a substantial understatement of income tax under the provision of IRC section 6662(b)(2).

4.8.9.13.6  (10-30-2004)
Tax Required to be Withheld at Source

  1. A notice of deficiency with a deficiency from income tax required to be withheld at source under Chapter 3 of the Internal Revenue Code will include the following opening paragraph in Letter 902 (DO):

    "In accordance with the provisions of existing internal revenue laws, notice is given that the determination of your liability for withholding of income tax at source for the taxable year ended ----- discloses a deficiency of $-----. The attached statement shows the computation of the deficiency. "

4.8.9.13.7  (12-01-2006)
Tip Income and FICA Tax Informational Notice

  1. An informational notice should be sent to the taxpayer with the notice of deficiency when tip income is adjusted and FICA tax and penalties are assessed. The notice informs the taxpayer that a separate notification will be (or has been) sent from the campus for the FICA tax and penalties. The notice will lessen the confusion regarding the receipt of two separate bills for income tax and FICA tax and penalties.

  2. The informational notice is not actually part of the notice of deficiency; therefore, the following actions must be taken when the notice is sent with the notice of deficiency.

    1. The notice must be labeled "For Informational Purposes Only. "

    2. The notice must be on a separate page apart from any of the actual parts of the notice of deficiency.

    3. The specific language shown in Exhibit 4.8.9–4 must be used for the notice.

4.8.9.13.8  (12-01-2006)
Notices with Prepayment Credit Adjustments

  1. A statement must accompany the notice of deficiency, following the compilation of the statutory deficiency, when there is an understatement of prepayment credits. The following statement should be used to set forth the adjustment to prepayment credits. This statement does not apply to adjustments to earned income credit (EIC) and fuel tax credits.

         
    Prepayment Credit Adjustment
    Statutory Deficiency   $___
    Correct Amount of Prepayment Credits:  
     Federal Income Tax Withheld: $__  
     Estimated Tax Payments: $__  
    Correct Prepayment Credit:   $___
         
    Prepayment Credits Claimed on Return:  
     Federal Income Tax Withheld: $__  
     Estimated Tax Payments: $__  
    Total Prepayment Credits on Return:   $___
         
    Understatement of Prepayment Credits: $___
         
    Net additional tax (or net overpayment): $___
         

  2. The Notice of Deficiency waiver will show the full statutory deficiency before adjustments to the prepayment credits.

  3. In no case will the statement accompanying the notice of deficiency reflect an adjustment decreasing the prepayment credits claimed by the taxpayer. Under IRC section 6201(a)(3), assessments based on such adjustments are not subject to deficiency procedures.

    1. Any adjustment decreasing prepayment credits claimed by the taxpayer will be corrected prior to the issuance of the notice of deficiency by Technical Services.

    2. Technical Services will fax the Revenue Agent Report (RAR), Form 5344, Examination Closing Record, and Form 3198, Special Handling Notice for Examination Case Processing, to the appropriate Centralized Case Processing (CCP) site to decrease the prepayment credits. After the adjustment is made, CCP will stamp the Form 5344 "Request Completed" and fax a copy to Technical Services for association with the original case file to show the adjustment was completed. prior to issuance of the notice of deficiency.

    3. The notice writer must act to ensure the prepayment credit adjustments are assessed before the statute expires and the notice of deficiency resulting from other issues is timely issued.

4.8.9.13.9  (10-30-2004)
Earned Income Credit and Fuel Tax Credits

  1. Adjustments to earned income credit (EIC) and fuel tax credits are included in the deficiency amount for tax computation purposes. However, separate assessments are made for EIC, fuel tax credits and other deficiency amounts due when assessed.

  2. The Special Handling Notice should indicate which credit is includible in the deficiency amount and on the waiver form.

4.8.9.13.10  (12-01-2006)
IRC Section 6015: Relief from Joint and Several Liability On Joint Return(s)

  1. See IRM 8.17.4.11, Notices of Deficiency Involving "Innocent Spouses" , and related subsections. When referring to IRM 8.17.4.11, SB/SE employees should substitute "Letter 531 (DO)" when "Letter 894 (CG), Notice of Deficiency," is cited in the text and bear in mind that IRM 25.15, Relief From Joint And Several Liability, is the current cross reference, not IRM 104.5.

4.8.9.14  (10-30-2004)
Special Cases

  1. The following includes instructions for cases requiring non-routine treatment when preparing a notice of deficiency.

4.8.9.14.1  (12-01-2006)
Consolidated Returns

  1. If a deficiency represents the consolidated income tax liability of an affiliated group of corporations, a reference to the consolidated group is used in the taxpayer's name line of the Letter 531 (DO), for example, Corporation X and Subsidiaries (a consolidated group).

  2. The summary of the tax liability will show the returns examined on a separate statement following Form 4089, Notice of Deficiency Waiver, illustrated as follows.

    Attachment to Form 4089    
      Statement
           
    Name (Parent Company)      
    Address      
    Returns Examined    
           
      Form TIN Taxable
    Year Ended
    A Company 1120 xx-xxxxxx 12/31/00
          12/31/01
    Subsidiary Companies      
    B Company 1120 xx-xxxxxx 12/31/00
    C Company 1120 xx-xxxxxx 12/31/00
          12/31/01
    D Company 1120 xx-xxxxxx 12/31/00

  3. The following statements will be added after the summary of the tax liability.

    The tax liability of A Company and each subsidiary company named above is stated as provided for by the regulations prescribed under IRC section 1502.


    The deficiency shown will be assessed severally against each corporation named above in accordance with the regulations prescribed under IRC section 1502.

4.8.9.14.2  (12-01-2006)
Jeopardy and Termination Assessments

  1. A notice of deficiency for a jeopardy assessment case must be issued within 60 calendar days after the jeopardy assessment or the jeopardy assessment is not valid. The notice of deficiency, however, remains valid.

    1. Letter 895 (DO), Notice of Deficiency, and Form 4089–A, Notice of Deficiency Statement, will be used for income tax straight deficiency cases involving one or more years.

    2. Letter 896 (DO), Notice of Deficiency, and Form 4089–A will be used for income (other than straight deficiency), estate and gift tax cases and special cases such as transferee, affiliated groups, withholding at source, etc.

  2. A notice of deficiency for a termination assessment case must be issued within 60 calendar days after the later of the:

    1. due date of the return (including extensions), or

    2. date the taxpayer filed the return.

  3. Failure to issue the notice of deficiency within the 60 calendar day period renders the termination assessment invalid, but the notice of deficiency remains valid. The notice will consist of Letter 531 (DO), Form 4089, Notice of Deficiency - Waiver, and Form 886–A, Explanation of Items.

  4. Special instructions relating to the preparation of a notice of deficiency relating to jeopardy and termination assessments under IRC section 6851, IRC section 6861, IRC section 6862, and IRC section 6867 are in IRM 4.15.6, Jeopardy/Termination Assessments Handbook - QMS Guidelines.

4.8.9.14.3  (10-30-2004)
Bankruptcy Cases

  1. Special instructions relating to the preparation of a notice of deficiency involving bankruptcy cases are in IRM 4.27.3, Bankruptcy – Review & Processing Procedures.

4.8.9.14.4  (12-01-2006)
Transferor — Transferee Liability Cases

  1. A notice of deficiency issued to a transferee will include the following:

    1. Letter 902 (DO) and Letter 1005 (DO), Deficiency Letter in Bankruptcy & Receivership Cases, with specific opening paragraphs as provided in IRM 4.8.9.14.4.1 below.

    2. Statement — Summary of liability of the transferee with specific explanatory paragraphs as provided in IRM 4.8.9.14.4.3 below.

    3. Form 870 or Form 890 (estate tax), Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Overassessment, with specific paragraphs as provided in IRM 4.8.9.14.4.4, below.

4.8.9.14.4.1  (10-30-2004)
Transferee Letter Opening Paragraphs

  1. Letter 902 (DO) or Letter 1005 (DO) (bankruptcy and receivership) will include special opening paragraphs. Since the opening paragraph will identify the name and address of the transferor, the mailing address shown on the 90-day letter to the transferees will include only the name and address of the transferee.

  2. Liability for an unpaid original tax of the transferor:

    "We will assess against you the amount of $---, plus interest as provided by law, constituting your liability as transferee of assets of (Transferor), (Address), for unpaid income tax due from (Transferor), for the taxable year ended ---, as shown in the attached statement."

  3. Liability for an unpaid deficiency of the transferor:

    "The determination of the income tax liability of (Transferor), (Address), for the taxable year ended ---, discloses a deficiency in the amount of $---, as shown in the attached statement. The amount of the deficiency, plus interest as provided by law, constitutes your liability as transferee of assets of (Transferor), and will be assessed against you."

  4. Unpaid deficiency of the transferor for one year in excess of an overpayment by the transferor for another year:

    "The determination of the income tax liability of (Transferor), (Address), for the taxable years ended --- and ---, discloses a deficiency in the amount of $--- for the taxable year ended ---, and an overassessment for the taxable year ended ---, as shown in the attached statement. The amount of the deficiency, plus interest as provided by law, constitutes your liability as transferee of assets of (Transferor), and will be assessed against you. The overassessment, to the extent that it represents an overpayment of tax, will be refunded or credited as provided by law."

  5. Value of the assets received by the transferee is less than the unpaid deficiency of the transferor:

    "The determination of the income tax liability of (Transferor), (Address), for the taxable year ended ---, discloses a deficiency in the amount of $--- as shown in the attached statement. $--- of the amount of the income tax deficiency, plus interest as provided by law, will be assessed against you as transferee of assets of (Transferor)."

  6. Transferee of a transferee with respect to their liabilities for an unpaid deficiency of the transferor:

    "The determination of the income tax liability of (Transferor), (Address), for the taxable year ended ---, discloses a deficiency in the amount of $---, as shown in the attached statement. The amount of the deficiency, plus interest as provided by law, constitutes your liability as transferee of assets of (First Transferee), transferee of assets of (Transferor), and will be assessed against you."

  7. Fiduciary with respect to personal liability under IRC section 6901 and 31 U.S.C. 3713(b) by reason of the fiduciary having paid any debt or distributed assets without first having satisfied the tax due from the estate:

    1. Income Tax:

      "The determination of the income tax liability of (Taxpayer), (Address), for the taxable year ended ---, discloses a deficiency in the amount of $---, as shown in the attached statement. This amount, plus interest as provided by law, constitutes your personal liability under 31 U.S.C. 3713(b), as amended, as fiduciary of (Taxpayer), and will be assessed against you."

    2. Estate Tax:

      "We have determined an assessment against you in the amount of $---, plus interest as provided by law, which constitutes your personal liability under 31 U.S.C. 3713(b), as a fiduciary for estate tax due from the estate of ---, (Address), as shown in the attached statement. "

    3. Gift Tax:

      "We have determined an assessment against you in the amount of $---, plus interest as provided by law, which constitutes your personal liability under 31 U.S.C. 3713(b), as a fiduciary for gift tax due from (Taxpayer), deceased, for the calendar year(s) ---, as shown in the attached statement."

  8. Decedent's estate when it is proposed to hold the estate liable for the payment of a deficiency due from a corporation of which the decedent was a transferee during his/her lifetime:

    "During his/her lifetime, (Taxpayer), deceased, (Address), incurred an income tax liability in the amount: of $---, as transferee of assets of (Transferor), (Address), for the taxable year ended ---, as shown in the attached statement. This amount, plus interest as provided by law, will be assessed against the estate of the decedent."

  9. Trustees of a decedent's estate if the duly qualified executors or administrators have been discharged and they or others are appointed trustees and it is necessary to issue a transferee letter to the trustees:

    "The determination of the income tax liability of (Taxpayer), Deceased, (or the estate of ---, (Deceased), (Address), for the taxable year ended --- discloses a deficiency in the amount of $---, as shown in the attached statement. This amount, plus interest as provided by law, will be assessed against you as transferee of assets of the estate of the decedent."

  10. Transferee of gift tax:

    "We have determined an assessment against you in the amount of $---, plus interest as provided by law, which constitutes your liability as a transferee of property of (Transferor), (Address), for gift tax for the calendar year(s) as shown in the attached statement."

  11. Transferee of estate tax:

    "We have determined an assessment against you in the amount of $---, plus interest as provided by law, which constitutes your liability as a transferee of property of the estate of ---, (Address), for estate tax, as shown in the attached statement."

  12. Transferee, trustee, and/or insurance beneficiary of estate tax:

    "We have determined an assessment against you in the amount of $---, plus interest as provided by law, which constitutes your liability as transferee, trustee, and/or beneficiary of property of the estate of ---, (Address), for estate tax, as shown in the attached statement."

    Note:

    "Trustee " is to be used pursuant to IRC sections 6324 and 6901 if the property is included in the gross estate under IRC sections 2035, 2036, 2037, 2038, 2040, 2041 or 2042. "Trustee" and/or "beneficiary " should be omitted if inapplicable. Such notice should be issued within the 3-year period under IRC section 6501.

4.8.9.14.4.2  (10-30-2004)
Jeopardy Assessment Transferee Letter

  1. If a jeopardy assessment under IRC section 6861 has been made against the transferee, the substitute opening paragraph of Letter 895 (DO) will be as follows:

    "The amount of tax, plus interest as provided by law, constitutes your liability as transferee of assets of (Transferor), and has been assessed against you as provided by the internal revenue laws applicable to jeopardy assessments."

4.8.9.14.4.3  (10-30-2004)
Transferee Statements Attached to Letters

  1. Statements to be attached to letters addressed to parties identified in the situations below.

    Transferee of assets of a corporation:
     
    STATEMENT
     
    (name of transferor), Transferor
    TIN:
    (Address)
     
    Tax liability for the taxable year ended____.
     
    (name of transferee), Transferee
    TIN:
    (Address)
     
    It has been determined that (name of transferor), (address), has been dissolved and that assets (identify assets and date(s) of transfer) were transferred to you on or about (date).
     
    The above amounts are your liability as a transferee of assets of (name of transferor) for a deficiency of income tax due from (name of transferor) for the taxable year shown above.

    Transferee of assets of an estate:
    STATEMENT
     
    Estate of (name of decedent), Deceased, Transferor
    TIN:
    (Address)
    Tax Liability for the taxable year ended __.
     
    (name of transferee), Transferee
    TIN:
    (Address)
     
    It has been determined that assets (identify assets) of the above named decedent's estate were transferred to you on or about (date).
     
    The above amount is your liability as a transferee of assets of the estate of (name of decedent) for a deficiency in income tax due from his estate for the taxable year shown above.

    Decedent's estate for the liability of the decedent incurred prior to date of death as a transferee of the assets of a corporation, estate, or other transferee:
     
    STATEMENT
     
    (name of transferor), Transferor
    TIN:
    (Address)
     
    Tax Liability for the taxable year ended__.
     
    (name of decedent), Deceased, Transferee
    TIN:
    (Address)
    (name of administrator), Administrator
    (Address)
     
    It has been determined that (name of transferor), (address), has been dissolved, that assets were transferred to (name of decedent) on or about (date), and that payment of an income tax deficiency in the amount of $--- for the taxable year shown above is due from the corporation.
     
    The above amount represents the liability of the estate of (name of decedent) for payment of the deficiency due from (name of transferor), which liability was incurred by (name of decedent) during his lifetime as a transferee of assets of said corporation.

    Transferee of a transferee of assets of a corporation, estate or other transferor:
     
    STATEMENT
     
    (name of transferor), Transferor
    TIN:
    (Address)
     
    Tax Liability for the taxable year ended__.
     
    (name of second transferee), Transferee
    TIN:
    (Address)
     
    It has been determined that (name of transferor), (address) has been dissolved, that assets were transferred to (name of first transferee) on or about (date), and that (name of first transferee) has been dissolved and its assets were transferred to you on or about (date).
    The above amount is your liability as a transferee of assets of the (name of first transferee), (address), transferee of assets of the (name of transferor), (address), for an income tax deficiency due from (name of transferor) for the taxable year shown above.
     
    Note: If the estate or other taxpayer is a transferor, the above paragraphs should be changed to cover the facts in that particular case.

    Trustees of a decedent's estate where the duly qualified executors or administrators have been discharged and they or others have been appointed trustees:
     
    STATEMENT
     
    Estate of (name of decedent), Deceased, Transferor
    TIN:
    (Address)
     
    Tax liability for the taxable year ended___.
     
    Estate of (name of decedent), Deceased, Transferee
    (names of trustee(s)), Trustee(s)
    (Address)
     
    The records of this office show that (name(s) of trustee(s)) were the qualified (executor and/or executrix and/or administrator) of the estate of (name of decedent), Deceased, until he/she/they were discharged as such on (date) and that they have been since that time and are now the trustees of the estate.
     
    The above amount represents the liability of the trust created under the will of (name of decedent), as transferee of assets of his/her estate, for a deficiency of income tax due from him/her (or his/her estate) for the taxable year shown above.

    Fiduciary who has incurred personal liability for payment of the tax of an estate under 31 U.S.C. 3713(b) through failure to observe the priority of the United States:
     
    STATEMENT
     
    Estate of (name of decedent), Deceased
    TIN:
    (Address)
     
    Tax liability for the taxable year ended___.
     
    (name of fiduciary)
    TIN:
    (Address)
     
    The records of this office show that you were served with proof(s) of claim by the United States on (date(s)). The records of the (name of court), (address) show that the estate of (name of decedent), Deceased, was closed on (date), and that certain debts were paid or distribution of the assets was made without first satisfying the tax due to the United States from the estate.
    The above amount is your personal liability under 31 U.S.C 3713(b), as amended, for a deficiency of income tax due from the estate of (name of decedent) for the taxable year shown above.

    Estate tax letter to a transferee of property received from an estate after decedent's death:
     
    STATEMENT
     
    Estate of (name of decedent), Deceased, Transferor
    TIN:
    (Address)
    (name of transferee), Transferee
    TIN:
    (Address)
     
    It has been determined that property of the estate of (name of decedent), Deceased, was transferred to you on or about (date). The liability of the estate for estate tax has not been discharged. The above amount is your liability as a transferee of property of that estate. Your liability does not exceed the value of the property you received.
     
    The estate tax return filed by the executor (executrix or administrator) on Form 706 has been verified as filed except as follows: (Show changes as in usual setup to the estate).

    Estate tax letter addressed to a fiduciary who has incurred personal liability for payment of the estate tax of an estate under 31 U.S.C. 3713(b) through failure to observe the priority of the United States:
     
    STATEMENT
     
    Estate of (name of decedent), Deceased
    TIN:
    (Address)
     
    (name of fiduciary)
    TIN:
    (Address)
     
    It has been determined that you have served as a fiduciary of the estate of the decedent named above, that the estate tax liability of the estate has not been discharged, and that you, as a fiduciary, paid a debt or debts, or distributed the estate in whole or in part without first discharging the estate tax liability.
    Accordingly, under 31 U.S.C. 3713(b), you are personally liable for the undischarged estate tax to the extent of such payments and distributions. The above amount is your personal liability.
     
    The estate tax return filed by the executor (executrix or administrator) on Form 706 has been verified as filed except as follows: (Use same setup as to estate).

    Estate tax letter addressed to a transferee of property transferred by the decedent during his/her life, or insurance, powers of appointment and jointly owned property with right of survivorship:
     
    STATEMENT
     
    Estate of (name of transferee), Deceased, Transferor
    TIN:
    (Address)
     
    (name of trustee or beneficiary), Trustee and Transferee, or (Insurance Beneficiary and Transferee) or (Trustee, Insurance Beneficiary and Transferee)
    TIN:
    (Address)
     
    It has been determined that property included in the gross estate of the decedent named above for the purpose of estate tax was transferred to or received by you on or about (date), and that the liability of the estate for estate tax has not been discharged.
     
    The above amount is your liability as transferee and trustee of property under a trust created by the decedent on (date), of which you are trustee. The amount of your liability does not exceed the value of the property you received.
     
    OR

    The above amount is your liability as transferee and trustee of insurance upon the life of (name of decedent), Deceased, the policy (or policies) numbered ----- having been issued by your company. The proceeds of the insurance are being held in whole or in part by your company and the income (or the income and part of the principal is being paid to a designated beneficiary (beneficiaries)). The amount of your liability does not exceed the amount of the insurance.
     
    OR
    The above amount is your liability as a transferee of property from the decedent during his lifetime on or about (date or dates) and also from the estate at or after his death. The amount of your liability does not exceed the value of the property you received.
     
    The estate tax return filed by the executor (executrix or administrator) on Form 706 has been verified as filed except as follows: (Show changes as in usual setup to the estate).
     
    Note: Combinations and variations of the above statement may be necessary. Each one should be worded to cover the particular case, care being exercised to combine with "transferee" the appropriate term "trustee" or "insurance beneficiary" or both.

    Gift tax letter addressed to a transferee of property from an individual as a gift:
     
    STATEMENT
     
    (name of donor), Donor
    TIN:
    (Address)
     
    (name of transferee), Transferee
    TIN:
    (Address)
     
    It has been determined that on or about (date or Dates) (name of donor) transferred property to you as a gift (or gifts), and that the gift tax liability has not been discharged. The above amount is your liability as a transferee of the property you received.
     
    The gift tax return by the donor (executor) on Form 709 has been verified as filed except as follows: (Show usual setup). Use the calendar year when applicable.

    Gift tax letter addressed to a fiduciary who has incurred personal liability for payment of the gift tax of a deceased donor under 31 U.S.C. 3713(b), through failure to observe the priority of the United States:
     
    STATEMENT
     
    Estate of (name of decedent), Deceased
    TIN:
    (Address)
     
    (name of fiduciary)
    TIN:
    (Address)
     
    It has been determined that you have served as executor (or administrator) of the estate of (name of decedent). At the time of his death, he/she was indebted to the United States for gift tax upon the transfer of certain property as a gift (or gifts). It also appears that you, as fiduciary, paid a debt or debts of the decedent or distributed the estate in whole or in part without first discharging the gift tax liability. Accordingly, under 31 U.S.C. 3713(b), as amended, you are personally liable for the undischarged gift tax to the extent of such payments and distributions. The above amount is your personal liability.
     
    The gift tax return by the donor (executor) on Form 709 has been verified as filed except as follows: (Use same setup as to donor). (Use the calendar year when applicable.)

    Gift tax letter addressed to trustee as transferee of property received from an individual as a gift in trust for the benefit of others:
     
    STATEMENT
     
    (name of donor), Donor
    TIN:
    (Address)
     
    (name of trustee and transferee), Trustee and Transferee
    TIN:
    (Address)
     
    It has been determined that on or about (date or dates), (name of donor) transferred property to you as gifts under a trust (or trusts) (dated) for the benefit of a certain person(s) named therein, and that the gift tax liability has not been discharged. The above amount is your liability as trustee and transferee of the property you received.
     
    The gift tax return by the donor (executor) on Form 709 has been verified as filed as follows: (Show same setup as to donor). (Use the calendar year when applicable.)

4.8.9.14.4.4  (12-01-2006)
Transferee Waivers on Assessment and Collection

  1. All letters disclosing deficiencies to transferees (except jeopardy assessment and bankruptcy and receivership letters), will be accompanied by Form 870 (income tax), or Form 890 (estate tax).

  2. Estate and gift tax letters should be revised for the particular situation.

  3. Paragraphs to be inserted on Form 870 for:

    1. Transferee, other than one liable under 31 U.S.C. 3713(b):

      "This represents the undersigned's liability as a transferee of assets of (Transferor), (Address), for income tax due, plus interest as provided by law, due from said (Transferor)."

    2. Transferee of a transferee:

      "This represents the undersigned's liability as a transferee of assets of (First Transferee), (Address), transferee of assets of (Transferor), (Address), for income tax due, plus interest as provided by law due from said (Transferor)."

    3. With respect to liability of a fiduciary under IRC section 6901 and 31 U.S.C. 3713(b):

      This represents the undersigned's personal liability under 31 U.S.C. 3713(b) for income tax due from said (taxpayer).

4.8.9.14.5  (10-30-2004)
TEFRA Investor with Open TEFRA Proceeding

  1. Munro computations (Munro v. Commissioner , 92 T.C. 71 (1989)) are to be used in statutory notices of deficiency when preparing notices to the TEFRA investor (with open TEFRA proceeding(s)) for the non-TEFRA issues, except when the returns involved are determined to be oversheltered. See IRM 8.19.4.11 for wording to be included in the notices of deficiency in these situations.

4.8.9.15  (10-30-2004)
Tax Returns not Available

  1. The following includes instructions for preparing notices of deficiency when the original return(s) is not available.

4.8.9.15.1  (10-30-2004)
Notice of Deficiency When the Original Tax Return is not Available

  1. An examination can be conducted on a copy of a taxpayer's return or with a BRTVU/RTVUE print. Accordingly, if a statute is imminent, it may be necessary to issue a notice of deficiency based on copies of returns or BRTVU/RTVUE prints. If so, the following steps are to be taken.

    1. A transcript must be obtained to verify taxable income and tax per return.

    2. The original return will be secured using ESTAB procedures. A charge-out will indicate the location of the return.

4.8.9.15.2  (10-30-2004)
Multi-Year Examination When the Tax Return is not Available

  1. When, in multiyear examinations, there is an original return for the initial year and copies or BRTVU/RTVUE for prior and/or subsequent years, then:

    1. the adjustments made should correlate to a specific line item on the tax return, and

    2. if a specific line item is undeterminable from a transcript or a copy of a return, adjustments for fixed percentages based on prior years actual dollar amount adjustments should not be the basis for the determination of the deficiency.

4.8.9.15.3  (10-30-2004)
Asserting the Civil Fraud Penalty When the Tax Return is not Available

  1. If the fraud penalty is being asserted, immediate attempts must be made to secure the original tax return. Such attempts need to be documented and made part of the case file.

4.8.9.16  (10-30-2004)
Electronically Filed Returns Where the Civil Fraud is Asserted

  1. Secure Form 8453, U.S. Individual Income Tax Declaration for Electronic Filing, (if the electronically filed return required such form to be submitted) when issuing a notice of deficiency for an electronically filed return where the civil fraud penalty is being asserted. Form 8453 is the signature document and it is imperative to secure Form 8453 if the fraud penalty is being asserted. The Form 8453 will not automatically be associated with the print of the return. See also IRM 4.8.9.21.1, Electronically Filed Returns.

  2. To obtain the Form 8453, secure a transcript to verify the return was electronically filed. The first two digits of the DLN identify electronically filed returns. Use command code ELFRQ-AC2 or ESTAB procedures. State "Need Form 8453 only" in the remark section of the request. If the original W–2's are needed, use ESTAB procedures and enter "Need Form 8453 and original W–2's" in the remarks section.

  3. If Form 8453 cannot be secured, the case must be discussed with Area Counsel prior to preparing the notice of deficiency.

  4. For electronically filed returns using Personal Identification Number (PIN) signatures, use command code TRDBV to research specific information on electronically filed returns and TRPRT to request prints of electronically filed returns.

4.8.9.17  (10-30-2004)
Notice of Deficiency Suspense Files

  1. Office and Field Examination cases are suspended 105 days (165 days for taxpayers outside the United States) to await taxpayer correspondence, agreement or notification of a petition with the Tax Court.

  2. The suspense period is comprised of 90 days (or 150 days for taxpayers outside the United States), plus an additional 15 days to determine if a petition was filed with the Tax Court.

  3. Notice files must be controlled in a suspense unit using AIMS status code 24.

4.8.9.17.1  (10-30-2004)
Notice of Deficiency Suspense File Maintenance

  1. Each file folder will be marked with either the issue or default date of the notice as locally required.

  2. File the case folders by issue or default date (local option). Within these dates, file the cases alphabetically or numerically in TIN order (local option). Keep all related returns together under the name of the principal entity.

4.8.9.17.2  (10-30-2004)
90-Day Control Card File

  1. An alphabetical 90-day control file of all suspended cases including related cases will be maintained by the notices clerk in the suspense file area.

    1. If a completed Form 5345-D, Examination Request-ERCS (Examination Returns Control System) Users, Form 5345-B, Examination Request Non-ERCS Users, or Form 5354, Examination Request Non-Master File is in the case file, annotate the control card to show the issue or default date (local option) and the earliest statute expiration date on the 90-day letter.

    2. If no Form 5345 or Form 5354 is in the case file, affix an audit label, if available, to a blank control card and annotate the control card to show the issue or default date (local option) and the earliest statute expiration date of the 90-day letter. If no audit label is available, enter the entity information in the label area of a blank control card.

    3. For 90-day cases with related returns, cross-reference the respective control card with the name of the principal entity and the name(s) of the related return(s).

    4. Label or stamp the control file "Statute Case" (less than 120 days Ieft on Assessment Statute Expiration Date (ASED)) and annotate the control file for all statute cases to show the normal statute of limitations date or the extended statute of limitations date of the return.

  2. Automated control file systems may be used in place of the manual control card file; however, all requirements of the manual system must be met.

4.8.9.17.3  (12-01-2006)
Statute Control Card File

  1. To protect the period of limitation for assessment of 90-day cases, maintain a tickler-type control card file for all statute cases in the suspense file area.

    1. File by statute expiration date, then alphabetically.

    2. Review weekly to determine if further action is required to protect the Government's interest. While a notice suspends the running of the period of limitation for assessment of the principal case, the statutory period is not suspended for the related returns. Care must be exercised to protect the statute on related return(s) as well as the 90-day case. The normal statute of limitation date or the extended statute of limitation date annotated on the Form 5345 or 5354 may not remain the permanent statute expiration date. The assessments should never be delayed in reliance on tacking, despite its potential application as reflected in Exhibit 4.8.9-5. The deficiency should be assessed at the earliest opportunity.

      Example:

      If an agreement is received for a 90-day letter case, then the statute date is 60 days plus the number of days remaining on the normal statute. See Exhibit 4.8.9–5 for instructions on computing statute of limitation dates for defaulted letters and agreed 90-day letters.

  2. Identification and monitoring as a "Statute Case" must be made as follows:

    If: Then case is a "Statute Case " and:
    <120 days left on original ASED prior to issuance of Statutory Notice of Deficiency (SNOD) Must have 90-day letter issued before or as of the original ASED.
    <120 days left on revised ASED after issuance of SNOD Must be assessed before or as of the revised ASED

4.8.9.17.4  (10-30-2004)
Taxpayer Contact

  1. While the case is in suspense, the taxpayer may:

    1. make telephone contact

    2. send in correspondence

    3. submit additional information

    4. request reconsideration

    5. appear in person for further discussion

  2. Any communication with the taxpayer regarding 90-day letters should clearly state that reconsideration of the case will in no way serve to suspend or extend the 90/150 day period in which a petition may be filed with the United States Tax Court.

  3. If the taxpayer's representative calls or comes in to discuss the taxpayer's account, a valid, Power of Attorney (POA) or Tax Information Authorization must be in the file or no information can be furnished. A request may be made to the taxpayer to obtain a completed POA. Without a POA on file, a general explanation of the notice of deficiency may be provided.

4.8.9.17.4.1  (10-30-2004)
Telephone Contact

  1. When telephone contact is made:

    1. obtain the taxpayer's name, TIN and issue date of the 90-day letter

    2. pull the case file

    3. answer routine questions

    4. refer technical questions to designated technical person

4.8.9.17.4.2  (10-30-2004)
Correspondence Received

  1. When correspondence is received:

    1. date stamp the correspondence

    2. pull the case file

    3. determine disposition of the case

4.8.9.17.4.3  (10-30-2004)
Additional Information or Appointment Requested

  1. When the taxpayer submits additional information, requests an appointment, etc.:

    1. Route the case back to the designated technical person , the Examination group, or hold for other review, depending on local instruction.

    2. Annotate the date, action taken, and who initiated the action on both the control card and the statute control card files.

    3. Update the appropriate AIMS status code if the case is sent out of the 90-day Suspense office area.

  2. All 90-day cases should be returned to the 90-day suspense area for final disposition.

    IF: THEN:
    Agreement received: 1. Close all 90-day controls
    2. Update statute
    3. Forward for assessment
    No agreement received: 1. Suspense awaiting default
    2. Follow default procedures if default date has passed

4.8.9.17.4.4  (10-30-2004)
Taxpayer Requests Transfer of 90-Day Letter Case

  1. If the taxpayer requests transfer of a 90-day letter to another area, the area that issued the 90-day letter may transfer the case.

  2. Associate the correspondence with the case file and forward the file to designated technical person to approve and provide instructions.

  3. Technical Services staff will transfer, monitor and update internal controls.

4.8.9.18  (12-01-2006)
Undeliverable Notice of Deficiency

  1. A notice of deficiency forwarded by certified mail and returned by the U.S. Postal Service because the addressee has moved and left no forwarding address, is considered undeliverable.

  2. A notice returned by the U.S. Postal Service stamped " unclaimed" or "refused" is generally not considered undeliverable. These cases will be referred to the designated technical person.

  3. Any time a notice is returned undeliverable, a determination of the taxpayer's correct address will be made. Documentation of the research is required.

  4. The following procedures must be performed immediately. Also, see IRM 4.10.2.8.6, Undeliverable Initial Contact Letters.

    1. Date stamp the returned envelope and associate the undeliverable notice with the case file.

    2. Check the envelope for a change of address annotated by the U.S. Postal Service.

    3. Recheck the file to determine that the letter was correctly addressed to the last known address of the taxpayer.

    4. Recheck all possible address sources in the case file.

    5. Check the telephone and/or city directory addresses to enable confirmation of the address.

    6. Contact the taxpayer's employer, return preparer or other third party, if known. Third party contact procedures apply.

    7. Research for a new address using in-house address information and outside locator services. Visit the E-research website for available locator services. http://rnet.web.irs.gov/rs/index.htm .

  5. Based on the information secured using the above process steps, either reissue the notice, as specified below, or allow it to default.

4.8.9.18.1  (10-30-2004)
In-House Address Information

  1. Review the AIMS Weekly Update Report for address changes. Codes 18 and 19 show new addresses updated to Master File.

  2. Request CFOL and IDRS research on both SSN's using command codes INOLES, SPARQ, IRPTRO, IROLE, IMFOLE, ENMODA and TELER (taxpayer's telephone number) to call the taxpayer.

  3. Contact Collection (Insolvency function) if the taxpayer is in bankruptcy.

4.8.9.18.2  (10-30-2004)
New Address Found

  1. If a new address is obtained and there is sufficient time remaining on the regular assessment statute, the notice of deficiency should be reissued. The period in which the taxpayer may petition the Tax Court starts with the date the new notice of deficiency is mailed.

  2. If sufficient time is not remaining on the regular assessment statute to reissue the notice of deficiency, then upon expiration of the 90-day period, the deficiency will be assessed as a result of the taxpayer's default (absent a petition or agreement).

    1. The envelope in which the letter was originally mailed and the notice of deficiency itself must be closed with the case file.

    2. The envelope, letter, and research performed will be part of the notice of deficiency. This documentation will establish that the Service complied with the law and mailed the notice by certified or registered mail to the taxpayer's last known address.

4.8.9.18.3  (10-30-2004)
Unable to Locate Taxpayer

  1. The address on Master File will be considered the taxpayer's last known address if the taxpayer cannot be located or a new address is not provided or verified by the taxpayer. If research shows no later address, the envelope in which the letter was originally mailed and the notice will be securely stapled in the taxpayer's file as evidence that the 90-day letter was sent by certified or registered mail to the taxpayer's last known address. However, the case should not be defaulted until the 105 or 165 day period has ended.

4.8.9.18.4  (10-30-2004)
Taxpayer Requests Copy of Unclaimed or Refused Notice of Deficiency

  1. Should a taxpayer request, after refusing to accept a notice, that the notice be given to them, it will be mailed with a cover letter by regular mail as set out below.

    "In accordance with (the request contained in your letter dated __or your telephone request of__), the notice of deficiency which was mailed to you by certified mail on (date), and which was returned by the U.S. Postal Service with the notation stamped thereon, (Unclaimed or Refused), is herewith returned to you."


    "You are advised that there is no provision in law for the suspension of the (90-day or 150-day) period provided for the filing of a petition in the United States Tax Court. You are further advised that if you file a petition, it must be filed with the United States Tax Court in Washington, D.C., within (90 or 150) days from the original mailing date of the notice of deficiency. Such (90 or 150) day period will expire on (date)."

4.8.9.19  (12-01-2006)
Protests, Correspondence and Waivers Received After Issuance of Notice of Deficiency

  1. When the taxpayer submits a protest, additional information or requests for the reconsideration of the deficiency:

    1. Letter 556 (DO), Acknowledgement of Protests, Correspondence and Requests for Interviews, may be used to acknowledge receipt. If Letter 556 (DO) is not used to acknowledge receipt, then the taxpayer will be contacted by telephone.

    2. The taxpayer must be clearly informed that reconsideration of the case will not suspend or extend the period for filing a petition with the Tax Court.

    3. Any contact or actions taken after the notice of deficiency is issued must be recorded in the administrative file.

    4. Responses to telephone inquiries on technical and procedural questions will be coordinated with the designated technical person.

4.8.9.19.1  (10-30-2004)
Protests for Appeals Hearings

  1. Following acknowledgement, the valid protest will be transmitted with the administrative file to the appropriate Appeals office serving the area making the determination of the tax liability (see IRM 8.4.1.5.2).

  2. The foregoing will not apply in the following situations:

    • The notice of deficiency contains an obvious error or omission in the computation of tax and correction will permit an immediate closing of the case.

    • Appeals has waived jurisdiction in accordance with Delegation Order 66.

4.8.9.19.2  (10-30-2004)
Additional Information and Reconsideration Requests

  1. Following acknowledgement, the correspondence will be associated with the case file. The case file will be returned to the designated technical person for consideration of the additional information.

  2. The designated technical person will determine the action to be taken based on the correspondence and requests for interview/conference submitted by the taxpayer.

4.8.9.19.2.1  (12-01-2006)
Notice of Deficiency Reconsideration Cases

  1. A notice of deficiency reconsideration case is one in which the taxpayer received a notice of deficiency and requests reconsideration of the deficiency.

    • Cases in which a notice of deficiency has been mailed and returned undeliverable are reconsiderations.

    • Delinquent returns submitted by the taxpayer are reconsiderations. See IRM 4.8.9.19.2.2, Delinquent Return Secured, below.

  2. The tax liability shown in the notice of deficiency cannot be increased. Exceptions are found in IRC section 6212 and IRC section 6213.

  3. New issues cannot be raised unless introduced by the taxpayer. Affirmative issues can be raised by the Service if the taxpayer files a petition with the Tax Court.

  4. The notice of deficiency issued will not be voided and the assembly should not be disturbed.


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