- 19 -
collection action begins before disputing the liability. Such a
concern was raised in Secretary Rubin’s letter to Ways and Means
Committee Chairman Archer, in which he warned that the expansive
Senate bill would “encourage * * * [taxpayers] to ignore their
liability until a collection action begins in earnest”. Letter
from Robert E. Rubin, supra. The regulations do not create such
a new remedy for nondeficiency liabilities, and there is nothing
in the Code or the legislative history of the Restructuring and
Reform Act to suggest that this is unreasonable.
The fact that no prepayment judicial forum is prescribed for
certain tax liabilities does not mean that a taxpayer is without
a forum to dispute these liabilities. Upon notice and demand for
payment of a tax liability, a taxpayer may seek review of the
liability by filing a protest with the Commissioner’s Appeals
Office. Secs. 601.103(c), 601.106, Statement of Procedural
Rules. The Appeals Office then provides a taxpayer with an
informal conference in which he or she may present evidence and
arguments in support of the position disputing the liability.
See sec. 601.106(c), Statement of Procedural Rules. The Appeals
officer has the “exclusive and final authority” to determine the
liability. Sec. 601.106(a)(1), Statement of Procedural Rules.
Further, the Appeals procedures provide that the Appeals officer
is duty bound “to determine the correct amount of the tax, with
strict impartiality between the taxpayer and the Government.”
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Next
Last modified: November 10, 2007