Joseph E. Lewis - Page 14
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A notice of deficiency is not, however, the only ticket to
the Tax Court. In other contexts, a taxpayer may enjoy
prepayment judicial review of a tax liability without having been
issued a notice of deficiency. For instance, with respect to the
Commissioner’s classification of individuals as employees for
purposes of employment taxes, an employer is afforded a process
akin to the deficiency procedures.7 Sec. 7436(d). In these
cases, where the Commissioner seeks to reclassify individuals as
employees, he may issue a notice of determination with respect to
the employment classification to the employer. Sec. 7436(b).
This notice of determination entitles a taxpayer to petition this
Court for de novo review of the employee classification as well
as the proper amount of tax owing from this classification. Sec.
7436(a) and (b). A taxpayer may also seek prepayment review in
this Court of a request for an abatement of interest. Sec.
6404(h)(1). A taxpayer might also be afforded prepayment
judicial review of a tax liability in a bankruptcy proceeding.
11 U.S.C. sec. 505(a) (2000); see also Sabath v. Commissioner,
T.C. Memo. 2005-222.
Thus, it is possible to interpret “otherwise have an
opportunity to dispute” to refer to those situations where a
taxpayer was afforded one of the other, nondeficiency, avenues
for prepayment judicial review. Accordingly, reading section
7 For this purpose, employment taxes are those taxes imposed
under subtit. C.
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Last modified: November 10, 2007