Otto's E-Z Clean Enterprises, Inc. - Page 8




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          regardless of the type of tax giving rise to the underlying tax             
          liability.  Sec. 6330(d)(1); Callahan v. Commissioner, 130 T.C.             
          ___ (2008) (frivolous return penalty gave rise to underlying tax            
          liability).  Where the validity of the underlying tax liability             
          is properly at issue, the Court will review the underlying tax              
          liability de novo.  Sego v. Commissioner, supra at 610.  Where              
          the underlying tax liability is not properly at issue, the Court            
          will review the administrative determination of the Appeals                 
          Office for abuse of discretion.  Lunsford v. Commissioner, 117              
          T.C. 183, 185 (2001); Sego v. Commissioner, supra at 610; Goza v.           
          Commissioner, 114 T.C. 176, 182 (2000).  The Appeals officer                
          abuses his discretion if his determination is exercised                     
          “arbitrarily, capriciously, or without sound basis in fact.”                
          Mailman v. Commissioner, 91 T.C. 1079, 1084 (1988).                         
               Petitioner alleged in its petition that respondent’s                   
          determination to sustain the proposed levy was in error.                    
          Specifically, petitioner alleged that it was improperly denied a            
          face-to-face section 6330 hearing.  However, petitioner did not             
          respond to respondent’s motion for summary judgment and did not             
          provide any affidavit or other documentation to refute                      
          respondent’s determination that a proper section 6330 hearing was           
          held.                                                                       
               While a hearing may consist of a face-to-face meeting, a               
          proper section 6330 hearing may also occur by telephone or                  







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Last modified: March 27, 2008