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Description of Verification Process for Both Lien and
Levy Situations
* * * [The settlement officer] verified through exami-
nation of transcripts and the administrative file,
including the original examination file and copies of
the statutory notices of deficiency, that all adminis-
trative and legal procedures were followed. The Statu-
tory Notice of Deficiency was mailed to your current
residence. You did not dispute the receipt of this
notice. The notice apprised you of your right to
petition the US Tax Court to dispute the assessment.
You did not file said petition within the timeframe set
by law.
Issues Raised by the Taxpayer
In a letter attached to your Form 12153 Request for a
Collection Due Process Hearing your representative
stated, in part “We are interested in reaching a con-
clusion and a reasonable payment plan as soon as possi-
ble, as stated back in June. Please adjust your re-
cords accordingly, since all returns were filed.” In
your June letter, your representative stated, “We are
at a loss to understand why the Service has not prop-
erly adjusted its records to reflect the true liability
as all returns have been filed to date and we have
asked for this on a number of occasions to no avail.”
Response: Because you neglected to file your returns
when the Service requested you to do so, the Service
prepared returns for you based on income information
submitted to the IRS by payers. The authority to
prepare returns when a taxpayer fails to do so volun-
tarily is found in IRC 6020(b). After the assessments
were made, you filed your returns. Although you de-
faulted on the original Statutory Notice of Deficiency
by failing to petition the US Tax Court, the Service
allowed your audit to be reconsidered. The administra-
tive record shows that on 10/30/2003 the Service issued
Letter 2726 advising you that the changes you requested
based on your own returns were considered, however, you
failed to supply any supporting documentation. This
letter also explained your right to contest this deci-
sion in Appeals. IRC � 6330(c)(2)(B) precludes the
underlying liability issue from being raised with a
Collection Due Process hearing if the taxpayer had a
prior opportunity to appeal the assessment.
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Last modified: May 25, 2011