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4. Whether Trial De Novo Is Appropriate in Determining
Whether Respondent’s Determination Under Section
6015(f) Was an Abuse of Discretion
Respondent contends that, because a taxpayer is entitled to
relief under section 6015(f) only if we determine that the
Commissioner’s determination was an abuse of discretion, we may
consider only the Commissioner’s administrative record in making
our determination. We disagree. Respondent’s view that we
should not provide a trial de novo if the standard of review is
abuse of discretion is at odds with decades of Tax Court
precedent and practice. The traditional effect of applying an
abuse of discretion standard in this Court is to alter the
standard of review, not to restrict what evidence we consider in
making our determination.
Courts have used various, but similar, phrases to describe
the meaning of an abuse of discretion standard, such as: The
taxpayer bears a heavy burden of proof, the Commissioner’s
7(...continued)
“ordinarily” based on the administrative record, unless, “with
the permission of the Court, upon good cause shown,” the Court
permits a party to introduce evidence that had not been presented
to the Commissioner. Rule 217(a). Our disposition of a
governmental obligation action under sec. 7478 is “made on the
basis of the administrative record, augmented by additional
evidence to the extent that the Court may direct.” Id. Our
disposition of a declaratory judgment action involving a
revocation, gift valuation, or the eligibility of an estate with
respect to installment payments under sec. 6166 “may be made on
the basis of the administrative record alone only where the
parties agree that such record contains all the relevant facts
and that such facts are not in dispute.” Id.
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