Kenneth P. Krueger - Page 8

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        Chairman of the Tax and IRS Oversight Sub-Committee, and the                  
        Chairman of the House Ways and Means Committee, stating that he               
        would not file a petition with the Tax Court until it was                     
        established that the Government had the legal authority to send               
        the notice of deficiency in the first place.  We have held in                 
        numerous cases that the approach taken by petitioner is without               
        merit.  See, e.g., Nestor v. Commissioner, 118 T.C. 162, 165                  
        (2002); Rewerts v. Commissioner, T.C. Memo. 2004-248; Israel v.               
        Commissioner, T.C. Memo. 2003-338; Bethea v. Commissioner, T.C.               
        Memo. 2003-278; Fink v. Commissioner, T.C. Memo. 2003-61; Koenig              
        v. Commissioner, T.C. Memo. 2003-40.  By taking this approach,                
        petitioner closed the door on his ability to contest the                      
        underlying tax liability.  See sec. 6330(c)(2)(B).                            
             Where the underlying tax liability is not at issue, we review            
        the Commissioner’s determination to proceed with collection for               
        abuse of discretion.  Sego v. Commissioner, 114 T.C. 604, 610                 
        (2000).  An abuse of discretion may be defined as an action that,             
        taking into account all the facts and circumstances, is                       
        unreasonable, arbitrary or capricious, clearly unlawful, or                   
        lacking sound basis in law.  See, e.g., Ewing v. Commissioner, 122            
        T.C. 32, 39-40 (2004); Swanson v. Commissioner, 121 T.C. 111, 119             
        (2003).                                                                       
             The May 11, 2004, telephone conference between petitioner and            
        respondent’s Appeals officer was agreed to by petitioner and                  
        constituted an appropriate hearing for purposes of section                    




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