Benjamin B. and Carolyn M. Haines - Page 6




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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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