- 2 - and/or 6330 (Notice of Determination), advising that the filing of the NFTL and proposed levy action for petitioner’s 2001 tax liability was sustained. The parties filed cross-motions for summary judgment and the issues presented for our consideration are: (1) Whether there was an abuse of discretion in respondent’s determination to sustain the filing of an NFTL relating to petitioner’s 2001 tax liability and to proceed with collection or levy action; and, (2) whether a penalty under section 66731 should be imposed against petitioner for advancing frivolous positions in this case. Background Petitioner failed to file a 2001 Federal income tax return, and respondent sent petitioner a notice of deficiency determining an income tax deficiency and additions to tax. Petitioner received the deficiency notice but took no action in response to respondent’s determination, and respondent assessed the income tax deficiency and additions to tax. Thereafter, respondent sent petitioner an NFTL on June 2, 2005. In response, petitioner submitted a Form 12153, Request for a Collection Due Process Hearing (hearing request), dated June 27, 2005. 1 Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the period under consideration, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 NextLast modified: November 10, 2007