                   T.C. Summary Opinion 2005-180



                      UNITED STATES TAX COURT



                   JESSE R. LANCE, Petitioner v.
           COMMISSIONER OF INTERNAL REVENUE, Respondent



     Docket No. 18041-04S.             Filed December 7, 2005.




     Jesse R. Lance, pro se.

     J. Craig Young, for respondent.


     WELLS, Judge:   This case was heard pursuant to the

provisions of section 7463 in effect at the time the petition was

filed.   The decision to be entered is not reviewable by any other

court, and this opinion should not be cited as authority.   All

section references are to the Internal Revenue Code, as amended,

and all Rule references are to the Tax Court Rules of Practice

and Procedure.
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     This matter is before the Court on respondent’s motion to

dismiss for lack of jurisdiction as to income tax preparer

penalties assessed pursuant to section 6694.   At the time of

the filing of the petition, petitioner resided in Georgetown,

South Carolina.

     On September 9, 2004, respondent’s Appeals Office issued a

Notice of Determination Concerning Collection Action(s) Under

Section 6320 and/or 6330, determining that a proposed lien was

appropriate with respect to income tax liabilities for

petitioner’s 1992, 1997, 1998, and 2000 tax years (tax notice).

The tax notice identified the liability in issue as follows:

     Tax Period(s) Ended:

     Form 1040, years 1992, 1997, 1998, 2000

The tax notice provided the following instructions for petitioner

to pursue a judicial review of the determination:   If you want to

dispute this determination in court, you must file a petition

with the United States Tax Court for a redetermination within 30

days from the date of this letter.

     Also on September 9, 2004, respondent’s Appeals Office

issued a second Notice of Determination Concerning Collection

Action(s) Under Section 6320 and/or 6330, determining that a

proposed lien was appropriate with respect to petitioner’s 1992
                               - 3 -

and 1993 tax years (penalty notice).   The penalty notice

identified the liability in issue as follows:

     Tax Type/Form Number and Tax Period(s) Ended:

     Civil Penalties, periods ended 12/31/1992, 12/31/1993

The record reveals that the penalties in issue include income tax

preparer penalties assessed, pursuant to section 6694(a) and (b),

for petitioner’s 1992 and 1993 tax years (the preparer

penalties).   The penalty notice provided the following

instructions for petitioner to pursue a judicial review of the

determination:

     If you want to dispute this determination in court, you
     have 30 days from the date of this letter to file a
     complaint in the appropriate United States District
     Court for a redetermination.

     Petitioner timely filed a petition with this Court for

judicial review of the determination with respect to the preparer

penalties.1   On November 2, 2005, respondent filed the instant

motion to dismiss for lack of jurisdiction as to the preparer

penalties.

     Section 6321 provides that if any person liable to pay any

tax neglects or refuses to pay the same after demand, the unpaid

tax shall be a lien in favor of the United States upon all


     1
      Petitioner filed an amended petition on Oct. 19, 2004. We
note that petitioner has not challenged in this Court the
determination of respondent’s Appeals Office with respect to the
proposed lien related to the income tax liability for
petitioner’s 1992, 1997, 1998, and 2000 tax years, as set forth
in the tax notice.
                               - 4 -

property and rights to property belonging to such person.2

Section 6320(a)(1) provides that the Secretary shall notify

persons described in section 6321 of the filing of a notice of

lien.3   Section 6320(a)(3) provides that such notification shall

inform the person in simple and nontechnical terms of (1) the

amount of the unpaid tax, (2) the right of the person to request

a hearing before an impartial officer of the Commissioner’s

Appeals Office, (3) the administrative appeals available to the

taxpayer, and (4) the provisions relating to the release of liens

on property.4

     2
      SEC. 6321.   Lien for Taxes.--

     If any person liable to pay any tax neglects or refuses to
pay the same after demand, the amount (including any interest,
additional amount, addition to tax, or assessable penalty,
together with any costs that may accrue in addition thereto)
shall be a lien in favor of the United States upon all property
and rights to property, whether real or personal, belonging to
such person.
     3
      SEC. 6320(a).   Requirement of Notice.--

          (1) In General.--The Secretary shall notify in writing
     the person described in section 6321 of the filing of a
     notice of lien under section 6323.
     4
      SEC. 6320(a).   Requirement of Notice.--

          (3) Information included with notice.--The notice
     required under paragraph (1) shall include in simple and
     nontechnical terms--

                (A) the amount of the unpaid tax;

                (B) the right of the person to request a hearing
           during the 30-day period beginning on the day after the
                                                    (continued...)
                               - 5 -

     The determination of the Commissioner’s Appeals Office is

subject to judicial review pursuant to section 6330(d)(1).5    See

sec. 6320(c).   However, the jurisdiction of this Court to review

determinations by the Commissioner’s Appeals Office pursuant to

section 6320 is limited to actions in which the underlying

liability is of a type over which the Court normally has

jurisdiction.   Sec. 6330(d)(1); Weber v. Commissioner, 122 T.C.

258, 264 (2004);   Moore v. Commissioner, 114 T.C. 171, 175

(2000); Van Es v. Commissioner, 115 T.C. 324, 328-329 (2000).

“The Tax Court is a court of limited jurisdiction, and we may

     4
      (...continued)
          5-day period described in paragraph (2);

               (C) the administrative appeals available to the
          taxpayer with respect to such lien and the procedures
          relating to such appeals; and

               (D) the provisions of this title and procedures
          relating to the release of liens on property.
     5
      SEC. 6330(d).   Proceeding After Hearing.--

          (1) Judicial review of determination.--The
     person may, within 30 days of a determination under
     this section, appeal such determination–-

               (A) to the Tax Court (and the Tax Court shall
          have jurisdiction with respect to such matter); or

               (B) if the Tax Court does not have
          jurisdiction of the underlying tax liability, to
          a district court of the United States.

     If a court determines that the appeal was to an
     incorrect court, a person shall have 30 days after the
     court determination to file such appeal with the
     correct court.
                               - 6 -

exercise our jurisdiction only to the extent authorized by

Congress.”   Moore v. Commissioner, supra at 175.    The Court’s

deficiency jurisdiction generally is limited to the

redetermination of income, estate, and gift taxes.    See secs.

6211, 6213(a).

     As noted above, the liabilities in issue were incurred with

respect to income tax preparer penalties assessed pursuant to

section 6694(a) and (b) for petitioner’s 1992 and 1993 tax years.

Section 6694(a) and (b) generally provide that an income tax

preparer may be subject to a penalty for preparation of a return

on which there is an understatement due to an unrealistic

position or due to willful or reckless conduct by the preparer.6

     6
      SEC. 6694. Understatement of Taxpayer’s Liability by
Income Tax Return Preparer.

     (a) Understatements Due to Unrealistic Positions.--If--

          (1) any part of any understatement of liability with
     respect to any return or claim for refund is due to a
     position for which there was not a realistic possibility of
     being sustained on its merits,

          (2) any person who is an income tax return preparer
     with respect to such return or claim knew (or reasonably
     should have known) of such position, and

          (3) such position was not disclosed as provided in
     section 6662(d)(2)(B)(ii) or was frivolous,

such person shall pay a penalty of $250 with respect to such
return or claim unless it is shown that there is reasonable cause
for the understatement and such person acted in good faith.

     (b) Willful or Reckless Conduct.--If any part of any
                                                   (continued...)
                               - 7 -

Section 6696(b) provides that the deficiency procedures that

serve as a jurisdictional prerequisite for this Court do not

apply with respect to the assessment or collection of income tax

preparer penalties assessed pursuant to section 6694:

          SEC. 6696(b). Deficiency Procedures Not to
     Apply.--Subchapter B of chapter 63 (relating to
     deficiency procedures for income, estate, gift, and
     certain excise taxes) shall not apply with respect to
     the assessment or collection of the penalties provided
     by sections 6694 and 6695.

Because we lack jurisdiction with respect to the underlying

amounts in issue, we lack jurisdiction to review respondent’s

Appeals Office determination with respect to the collection of

those liabilities.   Weber v. Commissioner, supra; Moore v.

Commissioner, supra; Van Es v. Commissioner, supra.     Accordingly,

in the instant case, we conclude that this Court lacks

jurisdiction to review the determination of respondent’s Appeals

     6
      (...continued)
understatement of liability with respect to any return or claim
for refund is due--

          (1) to a willful attempt in any manner to understate
     the liability for tax by a person who is an income tax
     return preparer with respect to such return or claim, or

          (2) to any reckless or intentional disregard of rules
     or regulations by any such person,

such person shall pay a penalty of $1,000 with respect to such
return or claim. With respect to any return or claim, the amount
of the penalty payable by any person by reason of this subsection
shall be reduced by the amount of the penalty paid by such person
by reason of subsection (a).
                                 - 8 -

Office with respect to the collection of income tax preparer

penalties assessed pursuant to section 6694.7    We have considered

all contentions that the parties have raised.8    To the extent not

addressed herein, those contentions are without merit or

unnecessary to reach.

     To reflect the foregoing,


                                                An appropriate order

                                         will be entered.




     7
      In this proceeding, we need not address the issue of
whether the penalty notice complied with sec. 6320(a)(3).
     8
      In a statement filed as a response to the instant motion to
dismiss, petitioner contends that the preparer penalties were the
result of the racism of employees of the Internal Revenue
Service. Because this Court lacks jurisdiction with respect to
the preparer penalties, we do not address petitioner’s
contentions.
