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contest the existence and amount of the underlying tax liability
if the taxpayer did not receive a notice of deficiency for the
tax liability in question or did not otherwise have an
opportunity to dispute the tax liability. Sec. 6330(c)(2)(B);
see also Sego v. Commissioner, 114 T.C. 604, 609 (2000).
Following the hearing, the Appeals Office is required to
issue a notice of determination regarding the disputed lien
notice. In so doing, the Appeals Office is required to take into
consideration the verification presented by the Secretary, the
issues raised by the taxpayer, and whether the proposed
collection action appropriately balances the need for efficient
collection of taxes with the taxpayer’s concerns regarding the
intrusiveness of the proposed collection action. Sec.
6330(c)(3). The taxpayer may petition the Tax Court for judicial
review of the Appeals Office’s determination. Sec. 6330(d).
If the taxpayer files a timely petition for judicial review,
the applicable standard of review depends on whether the
underlying tax liability is at issue. The phrase “underlying tax
liability” includes the tax deficiency, any penalties and
additions to tax, and statutory interest. Katz v. Commissioner,
115 T.C. 329, 339 (2000). If the underlying tax liability is
properly at issue, the Court reviews any determination regarding
the underlying tax liability de novo. Sego v. Commissioner,
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Last modified: March 27, 2008