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notice of deficiency for the year in issue or otherwise had an
opportunity to dispute the underlying tax liability, he or she is
precluded from challenging the existence or amount of the
underlying tax liability at the hearing. Sec. 6330(c)(2)(B).
This Court has jurisdiction to review the Commissioner’s
administrative determination under section 6330(d). If the
underlying tax liability is properly at issue, we review that
issue de novo. Sego v. Commissioner, 114 T.C. 604, 610 (2000);
Goza v. Commissioner, 114 T.C. 176, 181 (2000). If the validity
of the underlying tax liability is not at issue, we review the
determination for abuse of discretion. Sego v. Commissioner,
supra at 610. An abuse of discretion occurs when an officer
takes action that is arbitrary, capricious, or without sound
basis in fact or law. See Woodral v. Commissioner, 112 T.C. 19,
23 (1999).
Since petitioner received a statutory notice of deficiency
for 1996, the underlying tax liability is not at issue in this
case, and we review respondent’s determination to proceed with
the proposed levy for an abuse of discretion as to matters raised
in the petition.
B. Petitioner’s Right To Audio Record Her CDP Hearing
Following this Court’s opinion in Keene v. Commissioner, 121
T.C. 8, 19 (2003), decided on July 8, 2003, a taxpayer has the
right under section 7521(a)(1) to audio record his or her CDP
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Last modified: May 25, 2011