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tax, the Secretary may immediately levy upon the property or
rights to property of the person subject to the tax liability
without regard to the 10-day period otherwise required under
section 6331(a).19 Pursuant to section 6330(f), the person
subject to such a jeopardy levy is entitled to a section 6330
hearing within a reasonable period of time after the jeopardy
levy. Pursuant to section 6330(d), this Court has jurisdiction
to review the determination of respondent’s Appeals Office with
respect to a jeopardy levy. Dorn v. Commissioner, 119 T.C. 356,
359 (2002). We review such determinations for abuse of
discretion. Zapara v. Commissioner, 124 T.C. 223, 228 (2005).
In the instant case, respondent’s Appeals Office
incorporated petitioner’s jeopardy levy hearing into petitioner’s
section 6330 hearing on remand, and the Appeals officer sustained
the jeopardy levy. The actions of petitioner with respect to the
1997 bankruptcy sale proceeds demonstrate that the jeopardy levy
was proper. Petitioner received the bankruptcy sale proceeds
after the discharge of Barbara Drake and petitioner from the 1997
bankruptcy, and a Federal tax lien attached. Subsequently,
petitioner gratuitously transferred the bankruptcy sale proceeds
to Darren Drake and Gregory Drake, Jr., who took the proceeds
19Assuming that sec. 6331(k)(1) applies to a jeopardy levy
case, in the instant case, sec. 6331(k)(1) did not preclude a
jeopardy levy against petitioner because respondent accepted
petitioner’s offer-in-compromise for processing only after the
jeopardy levy had been imposed.
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