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the taxpayer to seek judicial review in the Tax Court or a U.S.
District Court. In considering whether taxpayers are entitled to
any relief from the Commissioner’s determination, this Court has
established the following standard of review:
where the validity of the underlying tax liability is
properly at issue, the Court will review the matter on
a de novo basis. However, where the validity of the
underlying tax liability is not properly at issue, the
Court will review the Commissioner’s administrative
determination for abuse of discretion. [Sego v.
Commissioner, 114 T.C. 604, 610 (2000).]
II. Analysis
As to the case at bar, the sole contention advanced by
petitioners in their pleadings with respect to the Notices of
Determination Concerning Collection Action(s) pertains to their
underlying liability for the 1997 year. Specifically, the
question of whether petitioners received unreported income would
affect the amount of taxes owed for 1997. Petitioners, however,
were previously issued a statutory notice of deficiency for 1997
but failed to institute a case in this Court. They have at no
time alleged that they did not receive the deficiency notice, and
respondent’s records do not show that the notice was returned as
unclaimed or undeliverable. Accordingly, section 6330(c)(2)(B)
precludes petitioners from disputing the unreported income issue
and their corresponding liability in the instant proceeding.
With respect to matters subject to review in collection
proceedings for abuse of discretion, the spousal claim advanced
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Last modified: May 25, 2011