- 12 - action under certain delineated circumstances. The orders described in section 7811 and the regulations are remedial in nature and specifically do not cover the Commissioner’s determinations with respect to the underlying tax liability. Sec. 301.7811-1(c)(3), Proced. & Admin. Regs. In this case, the problem resolution officer directed a reduction in petitioners’ 1995 tax liability to reflect the amount of tax that would have been due if Mr. Anderson had been an employee. That direction does not change the fact that the 1995 liability was assessed as self-employment tax under the deficiency procedures. Accordingly, we hold that at the time of respondent’s proposed collection activities, petitioners’ “underlying tax liability” was self-employment tax and that we have jurisdiction over the 1995 tax year. III. The Underlying Merits of Petitioner’s 1995, 1996, and 1997 Tax Liabilities Before the Commissioner may proceed to levy on a taxpayer’s property or right to property, the taxpayer must be notified, in writing, of the Commissioner’s intent and of the right to a hearing. Sec. 6331(d). Section 6330(c) provides that, if a taxpayer requests a hearing, the conducting officer (1) must verify that the requirements of applicable law and administrative procedures have been met and (2) may consider certain issues, such as spousal defenses, challenges to the appropriateness ofPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011