Joseph Paul Freije - Page 20

                                       - 20 -                                         
         the year (or period) to which the unpaid tax relates, as                     
         respondent contends, but extends to facts and issues in                      
         nondetermination years where they are relevant to computing the              
         unpaid tax.                                                                  
              In interpreting the scope of section 6330(c)(2), we note                
         first that the legislative history indicates that Congress                   
         intended a broad construction of the issues that a taxpayer was              
         entitled to raise under that section.  "In general, any issue                
         that is relevant to the appropriateness of the proposed                      
         collection against the taxpayer can be raised at the pre-levy                
         hearing."  H. Conf. Rept. 105-599, at 265 (1998), 1998-3 C.B.                
         747, 1019.                                                                   
              Second, considering the terms of the statute in their                   
         ordinary meaning, a "relevant issue relating to the unpaid tax or            
         the proposed levy" surely includes a claim, such as the one here,            
         that the "unpaid tax" has in fact been satisfied by a remittance             
         that the Commissioner improperly applied elsewhere.  Both section            
         6331, which empowers the Commissioner to impose a levy, and                  
         section 6330, which requires the Commissioner to afford a hearing            
         before proceeding with a levy and provides our jurisdiction to               
         review his determination to proceed with a levy, contemplate an              
         "unpaid tax".  Secs. 6330(a)(1), (3)(A), (b)(2) and (3),                     
         (c)(2)(A), 6331(d)(1) (emphasis added).  Since an "unpaid tax" is            
         the sine qua non of the Commissioner's authority to levy, we                 






Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011