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OPINION
I. Introduction
The principal issue in this case is whether the settlement
officer, Mr. O’Shea, abused his discretion in determining to
proceed by levy to collect the unpaid tax. Before we address
that issue, we shall set forth the general rules governing such
determinations and our review. We shall then state the parties’
arguments and dispose of respondent’s objection to certain
testimony of petitioner’s. Finally, we shall decide whether Mr.
O’Shea abused his discretion.
II. Sections 6330 and 6331
Section 6331(a) authorizes the Secretary of the Treasury
(Secretary) to levy against property and property rights where a
taxpayer liable for taxes fails to pay those taxes within 10 days
after notice and demand for payment is made. Section 6331(d)
requires the Secretary to send the taxpayer written notice of the
Secretary’s intent to levy, and section 6330(a) requires the
Secretary to send the taxpayer written notice of his right to a
section 6330 hearing at least 30 days before any levy is begun.1
If a section 6330 hearing is requested, the hearing is to be
conducted by respondent’s Appeals Office, and, at the hearing,
the Appeals officer or employee (without distinction, Appeals
1 A taxpayer receiving a notice of Federal tax lien has
hearing rights similar to the hearing rights accorded a taxpayer
receiving a notice of intent to levy. See sec. 6320(c).
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Last modified: May 25, 2011