Michael Craig v. Commissioner - Page 15




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          reviews a taxpayer’s liability under the de novo standard where             
          the validity of the underlying tax liability is at issue.  The              
          Court reviews the other administrative determinations for abuse             
          of discretion.  Sego v. Commissioner, 114 T.C. 604, 610 (2000).             
          A taxpayer’s underlying tax liability may be at issue only if he            
          or she “did not receive any statutory notice of deficiency for              
          such tax liability or did not otherwise have an opportunity to              
          dispute such tax liability.”  Sec. 6330(c)(2)(B).                           
               With respect to 1990, 1991, and 1992, petitioner received a            
          notice of deficiency and petitioned the Court with respect                  
          thereto.  It follows that petitioner’s underlying tax liability             
          for 1990, 1991, and 1992 is not at issue.  Accordingly, we review           
          respondent’s determination for these years for abuse of                     
          discretion.                                                                 
               With respect to 1995, petitioner neither received a notice             
          of deficiency nor had an opportunity to dispute the underlying              
          tax liability.  Whereas the Appeals officer did not allow                   
          petitioner to raise at the equivalent hearing the underlying tax            
          liability for that year, respondent now recognizes that it was              
          error to do so (i.e., to not allow petitioner to dispute the                
          underlying tax liability for 1995).  See Hoffman v. Commissioner,           
          119 T.C. 140 (2002).  We review petitioner’s underlying tax                 
          liability for 1995 on a de novo basis.                                      








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