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posting of a bond, the substitution of
other assets, an installment agreement,
or an offer-in-compromise.
(B) Underlying liability.--The person
may also raise at the hearing challenges to
the existence or amount of the underlying tax
liability for any tax period if the person
did not receive any statutory notice of
deficiency for such tax liability or did not
otherwise have an opportunity to dispute such
tax liability.
Once the Appeals officer has issued a determination
regarding the disputed collection action, section 6330(d) allows
the taxpayer to seek judicial review in the Tax Court or a
District Court, depending on the type of tax involved. In
considering whether taxpayers are entitled to any relief from the
Commissioner’s determination, this Court has established the
following standard of review:
where the validity of the underlying tax liability is
properly at issue, the Court will review the matter on
a de novo basis. However, where the validity of the
underlying tax liability is not properly at issue, the
Court will review the Commissioner’s administrative
determination for abuse of discretion. [Sego v.
Commissioner, 114 T.C. 604, 610 (2000).]
II. Analysis
1. Review of Underlying Liabilities
As the Court observed in Newstat v. Commissioner, T.C. Memo.
2004-208, petitioner would be entitled to dispute the underlying
liability shown on his filed tax return for 1999. See Montgomery
v. Commissioner, 122 T.C. 1, 9 (2004). In that connection,
petitioner has repeatedly alluded to his entitlement to
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Last modified: May 25, 2011