Henry M. Lloyd - Page 47




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                    (e) Matters considered at CDP hearing.--(1) In                    
               general.--Appeals has the authority to determine the                   
               validity, sufficiency, and timeliness of any CDP Notice                
               given by the IRS and of any request for a CDP hearing                  
               that is made by a taxpayer.  Prior to issuance of a                    
               determination, the hearing officer is required to                      
               obtain verification from the IRS office collecting the                 
               tax that the requirements of any applicable law or                     
               administrative procedure have been met.  The taxpayer                  
               may raise any relevant issue relating to the unpaid tax                
               at the hearing, including appropriate spousal defenses,                
               challenges to the appropriateness of the proposed                      
               collection action, and offers of collection alterna-                   
               tives.  The taxpayer also may raise challenges to the                  
               existence or amount of the tax liability specified on                  
               the CDP Notice for any tax period shown on the CDP                     
               Notice if the taxpayer did not receive a statutory                     
               notice of deficiency for that tax liability or did not                 
               otherwise have an opportunity to dispute that tax                      
               liability.  Finally, the taxpayer may not raise an                     
               issue that was raised and considered at a previous CDP                 
               hearing under section 6320 or in any other previous                    
               administrative or judicial proceeding if the taxpayer                  
               participated meaningfully in such hearing or proceed-                  
               ing.  Taxpayers will be expected to provide all rele-                  
               vant information requested by Appeals, including finan-                
               cial statements, for its consideration of the facts and                
               issues involved in the hearing.                                        
               Petitioner’s reliance on the above-quoted regulation is                
          misplaced.  We find (1) no requirement in that regulation that              
          the Appeals Office use as a taxpayer’s RCP an amount of RCP                 
          previously determined by respondent’s collection division and               
          (2) no prohibition in that regulation on the Appeals Office’s               
          requiring a taxpayer to submit a new, updated offer-in-compromise           
          accompanied by a new, updated Form 433-A.27                                 

               27Part 5.8.5.2.2 of the IRM (Nov. 15, 2004) requires any               
          agent of the Commissioner who investigates an offer-in-compromise           
          to request updated financial information from the taxpayer if the           
                                                             (continued...)           





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