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The taxpayer proposed the Service act on his be-
half in seeking to recover damages the taxpayer
says are owed to him by another federal agency.
There is no established debt at this time, and
therefore, no power of levy against the debt to
recover the taxes owed. The taxpayer was advised
that he could file an original income tax return
for the subject year but has yet to do so. The
taxpayer was asked to file delinquent tax returns
but has not done so. There were no other alterna-
tives offered.
Whether the proposed action would be unnecessarily
intrusive as against the need to collect the revenue
efficiently.
The intrusiveness of the proposed levy is commen-
surate with the need to collect the revenue effi-
ciently and in such a manner. The failure to file
delinquent returns precludes the collection alter-
natives most often employed.
OPINION
Where, as is the case here, the validity of the underlying
tax liability is not properly placed at issue, the Court will
review the administrative determination of the Appeals Office for
abuse of discretion.5 Sego v. Commissioner, 114 T.C. 604, 610
(2000); Goza v. Commissioner, 114 T.C. 176, 181-182 (2000).
5Petitioner did not petition the Court with respect to the
notice that respondent issued to him relating to his taxable year
1989. Moreover, although invited to do so by the Appeals Office,
petitioner did not prepare and file with the Appeals Office a
return for 1989. At trial, petitioner testified that he did not
know what he owed for his taxable year 1989. Assuming arguendo
that petitioner had properly placed at issue the validity of the
underlying tax liability at issue, on the record before us, we
find that petitioner has failed to establish that petitioner’s
unpaid liability for 1989 is not valid.
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Last modified: May 25, 2011