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that this statutory requirement is intended to preserve the role
that the administrative appeals process plays in the resolution
of tax disputes by requiring taxpayers to pursue such remedies
before litigation).
A taxpayer generally is not regarded as having exhausted
available administrative remedies unless (1) before filing a Tax
Court petition, the taxpayer participates in an Appeals Office
conference, or (2) if no Appeals Office conference is granted,
the taxpayer, before the issuance of a notice of deficiency in
the case of a Tax Court petition, (a) requests an Appeals Office
conference and (b) files a written protest if a written protest
is required to obtain an Appeals Office conference. Sec.
301.7430-1(a) and (b)(1), Proced. & Admin. Regs.; see Rogers v.
Commissioner, T.C. Memo. 1987-374 (noting that before the
issuance of a notice of deficiency, the Internal Revenue Service
is seeking facts to decide whether it should determine a tax
deficiency and thereby force a taxpayer to incur litigation costs
or pay the determined tax; noting further that the regulations
are designed to require a taxpayer to either disclose information
needed by the Internal Revenue Service to make its decision or
forgo recovery of the taxpayer’s litigation costs). Though not
applicable here, certain limited exceptions apply to relieve
taxpayers of the requirement that they either participate in or
request an Appeals Office conference in order to be treated as
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Last modified: May 25, 2011