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defenses; challenges to the appropriateness of the collection
action; and collection alternatives, such as an offer in
compromise. Sec. 6330(c)(2)(A). Additionally, at the hearing, a
taxpayer may contest the existence and amount of the underlying
tax liability if the taxpayer did not receive a notice of
deficiency for the tax in question or did not otherwise have an
opportunity to dispute the tax liability. Sec. 6330(c)(2)(B);
see also Sego v. Commissioner, 114 T.C. 604, 609 (2000).
Following a hearing, the Appeals Office must make a
determination whether the proposed levy action may proceed. In
so doing, the Appeals Office is required to take into
consideration the verification presented by the Secretary, the
issues raised by the taxpayer, and whether the proposed levy
action appropriately balances the need for efficient collection
of taxes with the taxpayer’s concerns regarding the intrusiveness
of the proposed levy action. Sec. 6330(c)(3). The taxpayer may
petition the Tax Court, or, in limited cases, a Federal District
Court for judicial review of the Appeals Office’s determination.
Sec. 6330(d).
If the taxpayer files a timely petition for judicial review,
the applicable standard of review depends on whether the
underlying tax liability is at issue. Where the underlying tax
liability is properly at issue, the Court reviews any
determination regarding the underlying tax liability de novo.
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Last modified: May 25, 2011