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a final notice of intent to levy, which also included notice of
petitioners’ right to an administrative appeal of respondent’s
determination to collect the tax. In that regard, the
Commissioner cannot collect unpaid tax by levy without the
opportunity for a taxpayer to seek an administrative review of
the determination to proceed with collection, and/or the
opportunity for judicial review of the administrative
determination. Davis v. Commissioner, 115 T.C. 35, 37 (2000).
Petitioners did not file a petition following their receipt
of the notice of deficiency, so the validity of the underlying
liability was not properly at issue in the administrative
hearing, and is not at issue here. Accordingly the Court will
review the administrative determination for abuse of discretion.
Sec. 6330(c)(2)(B); Sego v. Commissioner, 114 T.C. 604, 610
(2000).
Because petitioners were not entitled to question the
underlying tax liability, their administrative hearing was
limited to collection issues, including spousal defenses, the
appropriateness of respondent’s intended collection action, and a
possible alternative to collection. Petitioners disputed the
appropriateness of respondent’s proposed collection action by
questioning whether the Appeals officer had satisfied the
verification requirement of section 6330(c)(1). Petitioners also
raised questions about whether respondent met various statutory
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Last modified: May 25, 2011