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(B) Underlying liability.--The person
may also raise at the hearing challenges to
the existence or amount of the underlying tax
liability for any tax period if the person
did not receive any statutory notice of
deficiency for such tax liability or did not
otherwise have an opportunity to dispute such
tax liability.
Once the Appeals officer has issued a determination
regarding the disputed collection action, section 6330(d) allows
the taxpayer to seek judicial review in the Tax Court or a
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).]
B. Analysis
Nothing in the record indicates that petitioner has at any
time throughout the administrative or judicial proceedings,
including the hearing on respondent’s motion, attempted to
challenge his underlying tax liability. Accordingly, we review
respondent’s determination to proceed with collection for abuse
of discretion. Action constitutes an abuse of discretion under
this standard where arbitrary, capricious, or without sound basis
in fact or law. Woodral v. Commissioner, 112 T.C. 19, 23 (1999).
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Last modified: May 25, 2011