T.C. Sum m ary Opi ni on 20 15 -5 5

UNITED STAT ES TAX COURT KURT H. HABEN, Pet it io ne r v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 98 52 -1 4S L. Fi le d S ep te m be r 8, 2 01 5.

Kurt H. Hab en , pro se. Alex an de r R. Ro ch e, fo r res po nd en t.

SUMM ARY OPINION GUY, Spec ia l Tri al Ju dg e: Thi s ca se was h eardpu rs uantto th e p ro vi si on s of sec ti on 74 63 of t he Int ern al Rev enue Co de ineffe ctwhenth e p et it io n was fil ed . Pur su an t t o s ect io n 7 46 3( b) , th e d eci si on to be en te redis no t re vi ewab le by 1
Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o the Int ern al 1 (co nt in ue d...)-2
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an y othe r co urt, an d thi s o pi ni on sh al l n otbe tre at edas p rece de ntforan y othe r cas e. The Int ern al Rev enue Serv ic e (IR S) Offi ce o f App eal s (Ap pe al s Off ic e) is su edto pe ti ti on er a n ot ic e o f de te rm in at io n s us ta in in g apro po se d l ev y to co ll ect pe na lt ie s as se ss edag ai ns t h im pu rs ua ntto sec ti on 66 72 forth e ta xabl e p eri od s en di ng Ju ne 30 , 20 09 , Sep te m be r 30 , 20 09 , andSep te m be r 30 , 20 12 (pe rio ds at is su e). Pet it io ne r in vo ke d the Co urt’s jur is di ct io n b y fil in g ati m el y

pe ti ti on for rev ie w of the de te rm in at io n p ur su an t t o s ect io n 6 33 0( d) . Peti ti on er re si de d i n Ill in oi s wh enth e p et it io n was fil ed . The is su es forde ci si on are: (1) whet he r pe ti ti on er m ay co nt es t h is li ab il ity fo r th e se ct io n 6 67 2 p en al ti es indi sp ut e; (2) if s o, wh ethe r he is li ab le forth e se ct io n 6 67 2 p en al ti es ; an d (3 ) if no t, wh ethe r th e App eal s Off ic e ab us edit s di sc ret io n i n d et erm in in g t o p ro ceedwith the pro po se d l ev y act io n. Bac kg ro un d So m e o f th e fac ts ha ve be enst ip ul at edan d a re s o fo un d. Th e st ip ul at io n o f fact s an d the acco m

pa nyin g e xh ib it s ar e in co rp or at edhe rei n b y th is refe ren ce.
(...co nt inue d) 1 Rev enue Co de , as a m en de d a ndineffec t atall rel ev an t t im es . Mon et ary am ou nt s are r ou nd edto th e n eare stdo ll ar.-3
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I. Pet it io ne r’s Back gr ou nd Pet it io ne r earne d aba ch el or ’s deg ree f ro m DePau l Un iv ers ity

an d am as te r’s de gr ee fr om

Ro sary Co ll eg e. He is a cert ifi edpubl ic acco un tant . From 19 86 un ti l Decem be r 20 12 pe ti ti on er was em pl oyed b y Am eri canCo ns ol id at ed Tran sp orta ti on Co s., In c. (ACTC). Fo r m uc h o f th atti m e, an d dur in g the pe rio ds atis su e, he serve d a s ACTC ’s com pt ro ll er. II. Co rp or at e Stru ctur e ACTC is a ho ld in g c om

pany for s ev eral subs id iary co rp or at io ns , in cl ud in g Cen tra l St at es Co ach Rep ai rs , Inc . (CSCR ). KarenBin gh am is th e m ajor ity

own er an d c hi ef ex ecu ti ve off

ic er o f ACTC an d i ts subs id iary co rp or at io ns . III. Ban krup tc y

Pro ceed in gs Beg in ni ng in20 06 an d i n the y ears th atfol lo wedACTC lo stsev eral im po rta ntco nt ract s. As it s re ve nu es de cl in ed , ACTC expe rie nc edfin an ci al di ffi cu lt ie s an d was un ab le to pa y am ou nt s due on cert ai n b an k l oa ns . In J ul y 20 09 ACTC an d C SCR f il edforba nkrupt cy . CSCR s ub se qu en tl y fai le d t o p ay ov er t o the IRS Fe de ral em pl oym en t t ax es forth e p eri od s atis su e. IV. Inv es ti ga ti on an d As se ss m en t o f Sec ti on 66 72 Pen al ti es Rev enue Offic er J en ni fer Gar dn er (R O Gardne r) i nv es ti ga te d C SCR’s fai lu re t o p ay

ov er i ts em

pl oym en t t ax es . On Dece m be r 13 , 20 12 , sh e in te rv ie wed-4
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pe ti ti on er an d M s. Bi ng ha m to de te rm in e whe th er the y sh ou ldbe co ns id ered

“ res po ns ib le pe rs on s” subjec t t o the pro vi si on s o f se ct io n 6 67 2. RO Gard ne r pr ov id edpe ti ti on er wi thNot ic e 6 09 , Priv acy A ctNot ic e, an d No ti ce 7 84 , Cou ld YouBe Per so na ll y

Liab le forCert ai n Unpa idFed eral Taxe s? RO Gardne r co ns id eredpe ti ti on er t o b e co m ba ti ve du rin g the in te rv ie w and , when th e in te rv ie w was co m

pl et ed , he d ecl in edto si gn Fo rm 41 80 , Rep ort o f In te rv ie w with In di vi du al Rel at iv e to Trus t FundReco ve ry Pen al ty or Pers on al Liab il ity for Exc is e Tax es . Peti ti on er re si gn edhi s p os it io n a t ACTC o n Dec em be r 19 , 20 12 . On J anua ry

15 , 20 13 , th e IRS m ai le d t o p et it io ne r a Let te r 11 53 , Trus t Fu nd Rec ov ery Pen al ty L et te r, st at in g tha t the IRS p ro po se d t o a ss es s s ect io n 6 67 2 pe na lt ie s ag ai ns t h im

as ape rs on who fai le d t o p ay ov er CS CR’s em

pl oym en t ta xe s. Th e Let te r 11 53 de sc rib edho w pet it io ne r co ul d c ha ll en ge th e p ro po se d as se ss m en ts by sub m it ti ng to th e App eal s Off ic e a fo rm al writ te n p ro te st . The Lett er 1 15 3 was sen t t o p et it io ne r athi s h om e ad dr es s- -a re si de nc e th athe sh ared with h is wife an d s on . Peti ti on er d oe s n otdi sp ut e th atth e IRS sen t the Lett er 11 53 by certi fie d m ai l t o h is co rrec t l as t kno wn ad dr es s. Bi ll W al sh , th e U.S. Po st al Serv ic e (USPS ) le tt er ca rri er wh o d el iv eredm ai l to pe ti ti on er’s ad dr es s i n e arl y 20 13 , tes ti fie d a t tria l an d d es cri be d i n d et ai l the USPS p ro cedur es th athe fol lo wedinatt em pt in g t o d el iv er the Lett er 1 15 3 t o-5 -

pe ti ti on er. Inacco rd an ce wi th USPS p ro cedur es an d c on si st en t wi th no ta ti on s tha t he pl acedon th e en ve lo pe inwhi chth e Let te r 11 53 was m ai le d t o p et it io ne r, Mr. Wals h fi rs t at te m

pt edto de li ve r th e le tt er atpe ti ti on er’s res id en ce o n Ja nu ary 17 , 20 13 . Whe n n o o ne an swe redth e d oo r, ho wev er, h e p la ceda USPS Fo rm 38 49 , Deli ve ry

Not ic e/ Rem in de r/R ecei pt , inpe ti ti on er’s m ai lb ox no ti fy in g hi m th atth e USPS h adatt em pt edto de li ve r anit em

of c ert ifi edm ai l fr om

th e IRS an d tha t h e co ul d v is ithi s l oc al po stoff ic e to tak e d el iv ery of

th e it em or c al l the po stoff ic e to reque stth atth e it em be red el iv ered . Alth ou gh Mr. Wals h l efttwo ad di ti on al Fo rm s 3 84 9 i n p et it io ne r’s m ai lb ox onJan ua ry 22 an d F eb ru ary 1, 20 13 , pet it io ne r di d n otap pe ar atth e p os t o ffi ce t o p ic k up the it em , no r di d h e cal l t o re qu es t tha t the it em be red el iv ered . The USPS subs eque nt ly retu rn edth e en ve lo pe be ari ng th e Let te r 11 53 to th e IRS m ark edinrel ev an t p art“ RETURN TO SENDER UN CLAIMED UNABLE TO FORWARD”. Pet it io ne r te st ifi edth athe di d n otrece iv e an y Fo rm s 3 84 9 fr om

th e USPS i n earl y 20 13 an d tha t h e was un aware th atth e IRS ha d p ro po se d t o a ss es s s ect io n 66 72 pe na lt ie s ag ai ns t h im . Peti ti on er fu rth er t es ti fie d tha t h e m ay ha ve be en tra ve li ng away

fro m ho m e whe n the USPS at te m pt edto de li ve r th e Let te r 11 53 , an d h e sp ecu la te d tha t M r. W al sh m ay ha ve pl acedth e Fo rm s 3 84 9 i n the wron g m ai lb ox .-6
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V. Col le ct io n Act iv it ie s The reco rdin cl ud es Fo rm s 4 34 0, Ce rti fic at e o f Ass es sm en ts , Paym en ts , and Oth er Sp eci fie d M at te rs , sum m ari zi ng act iv it ie s i n p et it io ne r’s acco un ts forth e pe rio ds at i ss ue . The ac co un t tran sc rip ts sh ow tha t o n Ap ril 12 , 20 13 , res po nd en t as se ss edth e se ct io n 6 67 2 p en al ti es indi sp ut e an d s en t t o p et it io ne r no ti ces of t he am ount s due foreach pe rio d a ndde m an d fo r pa ym en t. Pet it io ne r te st ifi edth athe fir stlea rn edth atth e se ct io n 6 67 2 p en al ti es ha d be enass es se d wh enth e IRS no ti fie d h im th atitwou ldwithh ol d aFed eral in co m e ta x re fundth athe ha d c la im edfor20 12 . The rec or d s ho ws tha t o n Ap ril 15 , 20 13 , th e IRS ap pl ie d p et it io ne r’s ov erp aym en t o f $2 ,27 3 fo r 20 12 to off se t a p orti on of th e se ct io n 6 67 2 p en al ty ass es se d fo r th e ta xabl e p eri oden di ng Ju ne 30 , 20 09 . 2 On Se pt em

be r 30 , 20 13 , th e IRS sen t t o p et it io ne r a Fi na l No ti ce o f In te ntto Lev y an d No ti ce o f You r Ri gh t t o aHeari ng no ti fy in g h im th athe owedsec ti on 66 72 pe na lt ie s an d re la te d i nt eres t t ot al in g $ 31 ,02 2 fo r th e p eri od s atis su e an d th atth e IRS pro po se d t o c ol le ctth e am ountdu e b y way of alev y act io n. Pet it io ne r subm it te d t o the App eal s Off ic e a t im el y

reque stforanadm in is tra ti ve

The reco rddo es no t re fle ctwhen pe ti ti on er was actua ll y no ti fie d tha t h is 2 refu ndfor20 12 ha d b eenwithh el d a ndso ap pl ie d.-7 -

he ari ng ass ert in g tha t h e sh ou ldno t b e h el d re sp on si bl e fo r CSC R’s fai lu re t o p ay ov er i ts em

pl oym en t t ax es . Dur in g the co ur se of t he App eal s Off ic e adm in is tra ti ve he ari ng , pet it io ne r m ai nt ai ne d tha t h e was no t l iabl e fo r th e se ct io n 6 67 2 p en al ti es at i ss ue . The App eal s Off

ic e d et erm in ed , ho wev er, tha t p et it io ne r ha d fa il edto tak e adva nt ag e of a pr io r op po rtu ni ty to ch al le ng e th e as se ss m en ts inqu es ti on , and , th eref or e, he co ul d n otco nt es t the ex is te nc e o r am ountof h is li ab il it ie s dur in g the adm in is tra ti ve he ari ng . Peti ti on er d idno t o fferanalt ern at iv e to or o th erwi se ch al le ng e th e ap pr op ria te ne ss of t he pro po se d l ev y act io n. On Ap ril 10 , 20 14 , th e App eal s Off ic e is su edto pe ti ti on er a No ti ce o f Dete rm in at io n C on cern in g C ol le ct io n Act io n( s) Und er Se ct io n 6 32 0 a nd/o r 63 30 su st ai ni ng th e p ro po se d l ev y act io n. Pe ti ti on er fi le d wi th th e Co urt a t im el y pe ti ti on forrev ie w of the de te rm in at io n, co nt in ui ng to pre ss hi s cl ai m th athe is no t li ab le forth e se ct io n 6 67 2 p en al ti es at i ss ue . Dis cu ss io n I. Sect io n 6 67 2 Tru stFundReco ve ry Pen al ti es Em pl oyers ar e requi redto withh ol d, an d s ub se qu en tl y pay ov er t o the IRS, Fed eral in co m e an d e m

pl oym en t t ax es fro m

th e wag es of the ir e m

pl oyees. Se e se cs . 31 02 (a), 3 20 2( a), 3 40 2( a)(1 ), 34 03 . In ac co rd an ce wi th sec ti on 75 01 (a),-8
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em pl oym en t t ax es are h el d t o b e a s pe ci al fun d i n tru stforth e Uni te d S ta te s an d co ns eque nt ly are referredto as “ tru stfun d t ax es ”. See Sl od ov v. Co m mis si on er, 43 6 U.S. 2 38 , 24 2- 24 3 (1 97 8) ; Po ll oc k v . Comm is si on er, 1 32 T.C. 21 , 25 n.1 0 (2 00 9) . A. Resp on si bl e Per so n Sect io n 6 67 2( a) p ro vi de s i n re le va ntpa rt t ha t an y pe rs onwho is requi redto co ll ect , tru th fu ll y

acco un t fo r, an d p ay

ov er an y tax im po se d i n t it le 26 an d wh o wil lfu ll y fai ls to do so is li ab le fora pe na lty equa l t o the am ou ntof t ax no t acco un te d fo r an d p ai d o ve r. The t erm “pe rs on ” is de fin edinsec ti on 66 71 (b ) an d in cl ud es an y

off ic er o r em

pl oyee of a co rp or at io n wh o i s ch arg edwith p erfo rm in g th e dut ie s d es cri be d i n s ect io n 6 67 2( a). Su chpe rs on s ar e ref erre d t o a s

“ res po ns ib le pe rs on s” , andth e te rm m ay be bro ad ly app li ed . Mas on v. Co m m is si on er, 1 32 T.C. 30 1, 3 21 (20 09 ). B. Ass es sm en t o f Sec ti on66 72 Pen al ti es Purs uantto sec ti on 66 72 (b )(1 ), th e Co m m is si on er n orm al ly m ay

no t as se ss a p en al ty unl es s h e fi rs t n ot ifi es th e res po ns ib le pe rs on of t he pro po se d a ss es sm en t ei th er i n p ers on or b y

writ te n n ot ic e se ntby m ai l t o the pe rs on ’s las t kno wn ad dr es se s. See Mas on v. Co m mis si on er, 1 32 T.C. at 3 17 -3 18 ; Ob ia ko r v. Co m m is si on er, T.C. Mem o. 2 01 5- 11 2. A Let te r 11 53 pro vi de s a r es po ns ib le-9
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pe rs on with n ot ic e o f a p ro po se d a ss es sm en t und er s ect io n 6 67 2 andan op po rtu ni ty to p ro te stth e m at te r with the App eal s Off ic e. Mas on v. Co m m is si on er, 1 32 T.C. at 3 17 . As p rev io us ly m en ti on ed , pet it io ne r m ai nt ai ns th athe was n ota res po ns ib le pe rs on who wil lfu ll y

fai le d t o p ay

ov er em pl oym en t t ax es of C SCR. Th e Co urt m ay co ns id er thi s i ss ue , ho wev er, o nl y if we c on cl ud e th atpe ti ti on er was en ti tl ed to co nt es t h is li ab il ity

forth e se ct io n 6 67 2 p en al ti es at i ss ue du rin g the App eal s Offi ce adm in is tra ti ve he ari ng . II. Adm in is tra ti ve Heari ng s an d J ud ic ia l Re vi ew Und er Se ct io n 6 33 0 Sect io n 6 33 1( a) au th or iz es th e Sec ret ary to lev y up onth e p ro pe rty andth e pr op erty rig ht s o f a t ax pa y er l iabl e fo r ta xe s wh o fa il s t o p ay th os e ta xe s wi th in10 da y s af te r no ti ce an d d em an d fo r pa y m en t i s m ad e. The l ev y

au th or iz edby sect io n 63 31 (a) m ay

be m ad e wit h re sp ectto unpa idtax on ly if th e Sec ret ary ha s g iv en writ te n n ot ic e to th e ta xp ay er n o l es s tha n 3 0 d ay s b efo re the lev y . Sec. 6 33 1( d) . Sect io n 6 33 0( a) re qu ire s tha t the writ te n n ot ic e in cl ud e th e am ou ntof t he unpa id ta x a ndin fo rm at io n abo utth e ta xp ay er’s ri gh t t o a n a dm in is tra ti ve he ari ng . If the tax pa y er re qu es ts anadm in is tra ti ve he ari ng , th e App eal s Off ic e is ch arg edwith c on du ct in g the he ari ng . Sec. 6 33 0( b) (1 ). In r en de rin g a n adm in is tra ti ve de te rm in at io n i n aco ll ect io n re vi ew pr oc eed in g u nd er s ect io n-1 0-

63 30 , th e App eal s Off

ic e m us t v eri fy th atth e requi rem en ts of a ny app li cab le law an d a dm in is tra ti ve pro cedur e h av e b eenm etinpro ces si ng th e ta xp ay er’s cas e. Sec. 6 33 0( c)(1 ), (3 )(A). The App eal s Off ic e al so m

us t co ns id er an y

is su es rai se d by the tax pa y er re la ti ng to th e co ll ect io n a ct io n, i nc lu di ng off ers of c ol le ct io n al te rn at iv es , rel ev an t s po us al de fen se s, an d c ha ll en ge s t o the ap pr op ria te ne ss of th e co ll ect io n a ct io n. Se c. 63 30 (c)( 2) (A), (3 )(B) . A tax pa y er m ay als o c ha ll en ge th e ex is te nc e o r am ountof h is or h er u nd erl y in g t ax li ab il ity if the tax pa y er d idno t rece iv e a n ot ic e o f de fic ie nc y or d idno t o th erwi se have anearl ie r op po rtu ni ty to di sp ut e th e ta x l iabi li ty. Sec. 6 33 0( c)(2 )(B) . Fin al ly, th e App eal s Off ic e m us t co ns id er wh ethe r th e co ll ect io n a ct io n b al an ces th e n eedforeffi ci en t co ll ect io n ag ai ns t the tax pa y er’s co nc ernth atco ll ect io n b e n o m or e in tru si ve th anne ces sa ry . Sec. 6 33 0( c)(3 )(C) . Sect io n 6 33 0( d) (1 ) gr an ts th is Co urt juris di ct io n t o re vi ew th e adm in is tra ti ve de te rm in at io n m ad e b y th e App eal s Off

ic e. If th e ta xp ay er’s un de rlyin g t ax li ab il ity

is pro pe rly in d is pu te , th e Co urt wi ll rev ie w th e de te rm in at io n d e n ov o. Go za v . Comm is si on er, 1 14 T.C. 17 6, 1 81 -1 82 (20 00 ). Whe re the un de rlyin g t ax li ab il ity is no t p ro pe rly at is su e, th e Co urt wi ll rev ie w th e d et erm in at io n fo r ab us e o f di sc ret io n. Id . at 1 82 ; s ee al so Seg o v . Co m m is si on er, 1 14 T.C. 60 4, 6 10 (20 00 ). An ab us e o f di sc ret io n o ccu rs if the-1 1-

App eal s Off

ic e ex erci se s i ts di sc ret io n “ arb itrari ly, cap ric io us ly, orwitho utso un d ba si s i n fa ctor l aw.” W oo dr al v. Co m m is si on er, 1 12 T.C. 19 , 23 (19 99 ). III. Whethe r Pet it io ne r May Con te stHis Liab il ity forSect io n 6 67 2 P en al ti es Pet it io ne r co nt en ds th athe was e nt it le d t o c on te sthi s l iabi li ty for the sec ti on 66 72 pe na lt ie s b efo re the App eal s Off ic e b ecau se he di d n otrece iv e th e Let te r 11 53 th atth e IRS m ai le d t o h im on Jan ua ry

15 , 20 13 . Res po nd en t co nt en ds th at he pro pe rly sen t the Lett er 1 15 3 b y cert ifi edm ai l an d tha t p et it io ne r ineffe ct tu rn edhi s b ackon th e o pp ortu ni ty to co nt es t the pro po se d a ss es sm en ts by de cl in in g t o c la im

hi s m ai l. The Co urt h as pre vi ou sl y he ldth ata ta xp ay er m ay no t de li be rat el y

refu se to acce ptde li ve ry of aLett er 1 15 3 (o r a n ot ic e o f de fic ie nc y ) an d n ev erthe le ss m ai nt ai n tha t h e o r sh e d idno t h av e a p rio r op po rtu ni ty to d is pu te th e und erl y in g l iabi li ty w ithi n the m ean in g o f se ct io n 6 33 0( c)(2 )(B) . See Giaqui nt o v . Comm is si on er, T.C. Mem o. 2 01 3- 15 0; see als o C am pb el l v . Co m m is si on er, T.C. Mem o. 2 01 3- 57 . Bi ll W al sh , th e USPS l et te r carrie r res po ns ib le forde li ve rin g p et it io ne r’s m ai l i n e arl y

20 13 , des cri be d the USPS p ro cedur es th athe fol lo wedinatt em pt in g to de li ve r th e Let te r 11 53 to pe ti ti on er. Mr. Wals h i m pr es se d the Co urt as a fo rth rig htan d c red ib le witne ss . The rec or d s ho ws tha t M r. W al shlef t Fo rm s 3 84 9 inpe ti ti on er’s m ai lb ox on Jan ua ry 17 , Jan ua ry

22 , andFeb ru ary 1, 2 01 3,-1 2-

in fo rm in g h im

th atanit em

of c ert ifi edm ai l fr om

th e IRS was b ei ng he ldfor hi m atth e lo cal po stoff

ic e. Lik e th e ta xp ay er i n Gi aqui nt o v . Comm is si on er, at*1 3, p et it io ne r was ful ly aware th atth e IRS was e va lu at in g wh ethe r he sh ou ldbe co ns id ereda res po ns ib le pe rs on un de r se ct io n 6 67 2. RO Gard ne r ha d i nf orm edpe ti ti on er o f th is factwhen sh e in te rv ie wedhi m

inDecem

be r 20 12 , sh e ch arac te riz edpe ti ti on er as

“ co m ba ti ve ” dur in g the in te rv ie w pro ces s, an d s he no te d tha t h e d ecl in edto si gn Fo rm 41 80 su m

m ari zi ng th e subs tanc e o f th e in te rv ie w. Pet it io ne r fai le d t o o ffer

a pe rs ua si ve ex pl an at io n wh y he di d n otrece iv e an y of t he th ree F orm s 3 84 9 tha t M r. W al sh lef t i n h is m ai lb ox . Alth ou gh pe ti ti on er v ag ue ly sug ge st edth athe m ay ha ve be entra ve li ng away fro m ho m e in earl y 20 13 or t ha t M r. W al sh m ay ha ve pl acedth e Fo rm s 3 84 9 i n the wron g m ai lb ox , he d idno t o fferan y ob jecti ve ev id en ce i n s up po rt o f ei th er p ro po si ti on . Co ns id eri ng all th e fac ts an d c irc um st an ces , th e Co urt co nc lu de s tha t p et it io ne r de li be rat el y

fai le d t o c la im

th e Let te r 11 53 . In ac co rd an ce wi th sec ti on 63 30 (c)( 2) (B), i t fo ll ows th atpe ti ti on er was pre cl ud edfro m co nt es ti ng hi s l iabi li ty fo r th e se ct io n 6 67 2 p en al ti es at i ss ue du rin g the App eal s Off ic e adm in is tra ti ve he ari ng .-1 3-

IV. Rev ie w for

Abu se of Di sc ret io n Bec au se pe ti ti on er’s und erl y in g l iabi li ty is n otpro pe rly at is su e, we rev ie w th e App eal s Off

ic e’s de te rm in at io n t o p ro ceedwith the pro po se d l ev y act io n fo r ab us e o f di sc ret io n. Th e rec or d s ho ws tha t the App eal s Off ic e p ro pe rly veri fie d th atth e requi rem en ts of app li cab le law an d a dm in is tra ti ve pro cedur e were m etin pr oc es si ng pe ti ti on er’s cas e. See s ec. 6 33 0( c)(1 ), (3 )(A). Pet it io ne r di d n otoff er a co ll ect io n a lt ern at iv e (s uc h a s an in st al lm en t ag reem en t o r anoff er-i nco m pr om is e) o r ot he rwis e ch al le ng e th e ap pr op ria te ne ss of t he co ll ect io n a ct io n. See s ec. 6 33 0( c)(2 )(A), (3 )(B) . Andinth e ab se nc e o f a fi na nc ia l s ta te m en t o r si mil ar i nf

orm at io n fr om

pe ti ti on er, we are sat is fie d tha t the App eal s Off ic e ba lanc edth e n eedforeffi ci en t co ll ect io n a ga in stco nc ern s tha t co ll ect io n b e n o m or e in tru si ve th anne ces sary . See s ec. 6 33 0( c)(3 )(C) . On th is reco rd , we co nc lu de th atth e App eal s Off ic e d idno t ab us e it s d is cret io n i n d et erm in in g t o pr oc eedwith the pro po se d l ev y act io n. To re fle ctth e fo reg oi ng , Deci si on wil l b e en te red fo r res po nd en t.