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legitimate concern of the taxpayer that the collection action be
no more intrusive than necessary. See sec. 6330(c)(3).
Section 6330(d) provides for judicial review of the
administrative determination in the Tax Court or a Federal
District Court, as may be appropriate. Where the validity of the
underlying tax liability is properly at issue, the Court will
review the matter de novo. However, where the validity of the
underlying tax liability is not properly at issue, the Court will
review the Commissioner’s administrative determination for abuse
of discretion. Goza v. Commissioner, 114 T.C. 176, 181-182
(2000).
Petitioners do not seek to challenge their underlying tax
liabilities. We therefore review respondent’s determination for
abuse of discretion. See Lunsford v. Commissioner, 117 T.C. 183,
185 (2001); Goza v. Commissioner, supra.
The sole collection alternative petitioners proposed was an
OIC. Section 7122(a) authorizes the Secretary to compromise any
civil case arising under the internal revenue laws. The
Secretary may compromise a liability on the ground of effective
tax administration when, inter alia, although collection in full
could be achieved, collection of the full liability will create
economic hardship. Speltz v. Commissioner, 124 T.C. 165, 172-174
(2005), affd. 454 F.3d 782 (8th Cir. 2006); sec.
301.7122-1(b)(3)(i), Proced. & Admin. Regs. Factors supporting
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Last modified: May 25, 2011