David Ray and Linda Lee Harris - Page 13

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          tax on which the Commissioner based the assessment, provided that           
          the taxpayer did not have an opportunity to seek a                          
          redetermination before assessment.  See, e.g., Landry v.                    
          Commissioner, 116 T.C. 60, 62 (2001) (“Because the validity of              
          the underlying tax liability, i.e., the amount unpaid after                 
          application of credits to which petitioner is entitled, is                  
          properly at issue, we review respondent’s determination de                  
          novo.”).  Whether the Commissioner’s assessment was made within             
          the limitation period also constitutes a challenge to the                   
          underlying tax liability.  Hoffman v. Commissioner, 119 T.C. 140,           
          145 (2002).                                                                 
               Under an abuse of discretion standard, “we do not interfere            
          unless the Commissioner’s determination is arbitrary, capricious,           
          clearly unlawful, or without sound basis in fact or law.”  Ewing            
          v. Commissioner, 122 T.C. 32, 39 (2004); see also Woodral v.                
          Commissioner, 112 T.C. 19, 23 (1999).  Review for abuse of                  
          discretion includes “any relevant issue relating to the unpaid              
          tax or the proposed levy”, including “challenges to the                     
          appropriateness of collection actions” and “offers of collection            
          alternatives” such as offers in compromise.  Sec. 6330(c)(2)(A).            
          Questions about the appropriateness of the collection action                
          include whether it is proper for the Commissioner to proceed with           
          the collection action as determined in the notice of                        
          determination, and whether the type and/or method of collection             






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