Robert H. And Sandra Fendler v. Commissioner of Internal Revenue

Taxpayers filed a joint return for the taxable year 1968 showing taxes due of $4,716. Form 3446, “Balance Due IRS,” was sent to taxpayers on December 12, 1969, reflecting this $4,716 tax, unreduced by any payments or credits. A penalty of $857, assessed under 26 U.S.C. §§ 6651 and 6654, and interest of $185.99 were added, producing a balance due of $5,759.39. Taxpayers filed a petition in the Tax Court urging error in the penalties and incorrect computation of interest.

The Tax Court dismissed the petition on the ground that no determination of a deficiency had been made and no notice of…