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the taxpayer to seek judicial review in the Tax Court or,
depending upon the circumstances, a U.S. 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).]
II. Challenges to Underlying Liabilities
As indicated in the above quotation of section
6330(c)(2)(B), challenges to the underlying tax liability may be
raised only where the taxpayer did not receive a notice of
deficiency or otherwise have an opportunity to dispute such
liability.
A. 1995 and 1996
With respect to 1995 and 1996, petitioner conceded to
Mr. Shirah during his Appeals Office hearing that he had received
the notices of deficiency issued by respondent. Thus, regardless
of the validity of the arguments submitted by petitioner in his
petition and amended petition concerning the adjustments made by
respondent to his 1995 and 1996 returns, he is precluded from
raising those disputes in this proceeding. The Court concludes
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Last modified: May 25, 2011