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(2) Issues at Hearing.--
* * * * * * *
(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.
A taxpayer, however, is precluded from relitigating issues
raised and considered in any previous Appeals hearing or any
other administrative or judicial proceeding in which the taxpayer
meaningfully participated. Sec. 6330(c)(4); Katz v.
Commissioner, 115 T.C. 329, 339 (2000).
Petitioners not only received a notice of deficiency for tax
year 1995, they also litigated the matter before this Court.
Therefore, they are precluded from challenging the existence or
amount of their 1995 tax liability in a subsequent section 6330
hearing. Sec. 6330(c)(2)(B).
Where, as is the case here, the validity of the underlying
tax liability is not properly placed at issue, the Court will
review the administrative determination of the Appeals Office for
abuse of discretion. Sego v. Commissioner, supra at 610; Goza v.
Commissioner, supra at 181-183. The Court reviews only whether
the Appeals officer's refusal to accept petitioners' OIC was
arbitrary, capricious, or without sound basis in fact or law.
See Woodral v. Commissioner, 112 T.C. 19, 23 (1999).
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