James Murden Wilcox - Page 6

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          administrative determinations, we have stated that, where the               
          validity of the underlying tax liability is properly at issue,              
          the Court will review the matter de novo.  Sego v. Commissioner,            
          114 T.C. 604, 610 (2000); Goza v. Commissioner, 114 T.C. 176, 181           
          (2000).  Where the validity of the underlying tax liability is              
          not properly at issue, however, the Court will review the                   
          Commissioner’s administrative determination for abuse of                    
          discretion.  Sego v. Commissioner, supra; Goza v. Commissioner,             
          supra.  The term “underlying tax liability” in section 6330(d)(1)           
          includes any amounts allegedly owed by a taxpayer pursuant to the           
          tax laws.  Katz v. Commissioner, 115 T.C. 329 (2000).  This                 
          includes the tax deficiency, additions to tax, and interest.  Id.           
          As petitioner does not dispute the validity of the underlying tax           
          liability, we review respondent’s determination for an abuse of             
               Petitioner’s claim regarding his inability to pay bears upon           
          issues such as collection alternatives or the appropriateness of            
          the collection action that the Court reviews for abuse of                   
          discretion.  An action constitutes abuse of discretion where it             
          is arbitrary, capricious, or without sound basis in fact or law.            
          Woodral v. Commissioner, 112 T.C. 19, 23 (1999).                            
               The record reflects no abuse of discretion by respondent.              
          We have found that in the face of allegations of undue hardship,            
          a taxpayer must submit complete and current financial data to               

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