- 21 -
respondent’s administrative record, and that the APA record rule
does not apply to section 6015(f) determinations in this Court.11
B. Whether Petitioner Is Entitled to Equitable Relief
Respondent contends that, even if we consider matter raised
at trial which was not included in the administrative file,
respondent’s determination that petitioner is not entitled to
equitable relief was not an abuse of discretion. We disagree.
The Commissioner announced a list of factors in Rev. Proc.
2000-15, sec. 4.03, 2000-1 C.B. 447, 448,12 that the Commissioner
11 Our holding herein is consistent with APA provisions
relating to judicial determinations made in connection with
agency actions. Tit. 5 U.S.C. sec. 554 (2000) (“Adjudications”)
does not apply to matters subject to trial of the law and the
facts de novo, such as our redetermination of a deficiency.
O’Dwyer v. Commissioner, 266 F.2d 575, 580 (4th Cir. 1959), affg.
28 T.C. 698 (1957). Tit. 5 U.S.C. sec. 706(2)(F) (2000)
provides, inter alia, that a “reviewing court” shall “hold
unlawful and set aside agency action, findings and conclusions
found to be * * * unwarranted by the facts to the extent that the
facts are subject to trial de novo by the reviewing court.” A
matter may be made subject to trial de novo by U.S. Code
provisions applicable to a specific action. See, e.g., 7 U.S.C.
sec. 2023(a)(15) (2000) (suits for judicial review of certain
agency actions under the food stamp program are by “a trial de
novo * * * in which the court shall determine the validity of the
questioned administrative action in issue”). As held herein, our
determinations under sec. 6015(e) are made based on trials de
novo. The legislative history of sec. 6015 does not suggest that
Congress contemplated changing the well-established
inapplicability of the APA to Tax Court determinations. S. Rept.
105-174, at 55-60 (1998), 1998-3 C.B. 537, 591-596; H. Conf.
Rept. 105-599, at 249-255 (1998), 1998-3 C.B. 747, 1003-1008.
12 Respondent’s determination was subject to Rev. Proc.
2000-15, 2000-1 C.B. 447, because it was in effect when
respondent’s Appeals officer evaluated petitioner’s request and
when respondent issued the notice of determination. Rev. Proc.
(continued...)
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