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subsequently notified petitioners that they were in default of
the prepetition taxes under the terms of the confirmed plan.
The Section 6330 Administrative Process
On March 1, 2003, respondent sent two Letters 1058, Final
Notice of Intent to Levy and Notice of Your Right to a Hearing,
one to each of petitioners, regarding their tax liabilities for
1992, 1993, and 1996. According to the notice of determination,
as of August 15, 2005, petitioners’ unpaid liabilities, including
statutory additions, were $22,858.53, $8,595.61, and $366.25 for
1992, 1993, and 1996, respectively.
Petitioners timely submitted a Form 12153, Request for a
Collection Due Process Hearing, for 1992 through 2002, along with
a letter explaining why they did not agree with the proposed
levy.
Petitioners’ case was assigned to Appeals officer Celia
Cleveland (AO Cleveland), and petitioners were afforded a
collection hearing via several telephone calls. At the hearing,
petitioners did not dispute the amount of underlying tax
liabilities self-assessed on the returns. Petitioners instead
contended that their tax liabilities should have been paid in
full by the funds that were available in the estate of the
consolidated bankruptcy cases.
Petitioners did not submit to respondent an offer-in-
compromise or any other collection alternatives during the
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