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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