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the taxpayer to seek judicial review in the Tax Court or a
District Court, depending upon the type of tax. In considering
whether taxpayers are entitled to any relief from the
Commissioner’s determination, this Court uses 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
A. Review of Underlying Liabilities
Petitioner’s position throughout this proceeding has been
that the liability the IRS is proposing to collect for 1991 is
incorrect. Rather, petitioner maintains that his liability is
more accurately reflected in the Form 1040 he allegedly filed for
1991, which reflected an overpayment of $471. Respondent asserts
to the contrary that petitioner is precluded from challenging his
underlying liability and has raised no other issues establishing
an abuse of discretion.
As previously indicated, section 6330(c)(2)(B) permits
taxpayers to challenge the underlying liability in a collection
proceeding only where they did not receive a notice of deficiency
or otherwise have a prior opportunity to dispute the liability.
A notice of deficiency for 1991 was sent to petitioner at 12079
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Last modified: May 25, 2011