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Petitioners filed a Petition for Redetermination of a
Deficiency3 requesting the elimination of penalties and interest
for their 1994 tax liability, and concurrent restoration of the
terms of the defaulted OIC. The trial occurred on November 1,
2005.
Discussion
Before a Federal tax lien is filed with regard to any
property or right to property, taxpayers are entitled to notice
and opportunity for a hearing before an impartial officer of the
respondent’s Office of Appeals. Secs. 6320(a) and (b),
6330(b)(3). If the taxpayers request a hearing, they may raise
in that hearing any relevant issue relating to the unpaid tax or
the proposed lien, including challenges to the appropriateness of
the collection action and “offers of collection alternatives,
which may include the posting of a bond, the substitution of
other assets, an installment agreement, or an offer-in-
compromise”. Secs. 6320(c), 6330(c)(2)(A). A determination is
then made which takes into consideration those issues, the
verification that the requirements of applicable law and
administrative procedures have been met, and “whether any
proposed collection action balances the need for the efficient
collection of taxes with the legitimate concern of the person
3On the petition, petitioners should have placed an “X” in
the box entitled Petition for Lien or Levy Action (Collection
Action), as this is not a deficiency case.
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Last modified: May 25, 2011