Harley Gunderson - Page 6




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               Although section 6330 does not prescribe the standard of               
          review that the Court is to apply in reviewing the Commissioner’s           
          administrative determinations, we have stated that, where the               
          validity of the underlying tax liability is properly at issue,              
          the Court will review the matter on a de novo basis.  Where the             
          validity of the underlying tax liability is not properly at                 
          issue, however, the Court will review the Commissioner’s                    
          administrative determination for abuse of discretion.  Sego v.              
          Commissioner, 114 T.C. 604, 610 (2000); Goza v. Commissioner, 114           
          T.C. 176, 181 (2000).                                                       
               We review respondent’s determination to proceed with the               
          levy action on an abuse of discretion basis because the validity            
          of the underlying tax liability is not properly at issue.  At the           
          hearing and in his petition, petitioner raised several arguments            
          regarding the conduct of his audit and the amount of the                    
          liability.  Petitioner could not dispute the existence or the               
          amount of the underlying tax liability at the hearing because               
          petitioner received a notice of deficiency and did have the                 
          opportunity to dispute such liability which resulted in the                 
          stipulated decision.5  See sec. 6330(c)(2)(B).                              
               In addition, petitioner did not assert in the petition any             


               5  The doctrine of res judicata, which applies to a                    
          stipulated decision, precludes relitigation of the issues                   
          involved in that tax litigation.  Cincinnati Transit Inc. v.                
          Commissioner, 55 T.C. 879, 883 (1971), affd. 455 F.2d 220 (6th              
          Cir. 1972); Krueger v. Commissioner, 48 T.C. 824, 829 (1967);               
          Hamdan v. Commissioner, T.C. Memo. 2000-19.                                 




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