T.C. M em o . 2 0 1 9 -1 3 7

UNITED STATES TAX COURT

CHARLES J . SCHUM AN, Pet i t i o n er v . COM M ISSIONER OF INTERNAL REVENUE, Res po n d en t

Do ck etNo . 2 6 9 21 -1 6 L. Fi l edOct o b er 1 5 , 2 0 1 9
.

Ch arl es J
. Sch u m an , p ro s e. Fred eri c J . Fern an d ez an dSam u el T. Ku zn iews ki (s tu d en t ), fo r res p o n d en t
.

M EM ORANDUM FINDINGS OF FACT AND OPINION NEGA, Jud g e: Th is cas e was co m m en cedi n res p o n s e t o a No t i ce o f Det erm i n at i on Co n cern i n g Co ll ect i o n Act i o n (s ) Un d er Sect i o n(s ) 6 3 2 0 an d/ o r 6 3 3 0 (n o t i ce o f d et erm i n at i o n ) t h ats u s t ai n eda Fi n al No t i ce o f In t en tt o Lev y an d No t ice o f Yo u r Ri g h tt o a Heari n g (n o t ice o f i n ten tt o l ev y ) wi th res p ect t o p et i t i o n er’ s u npai dFed eral i n co m e t ax l i ab i l i t i es fo r y ears 2 0 1 1 an d 2 0 1 2 (y ears at- 2
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[* 2 ] i s su e). 1 Pu rs u an t t o s ect i o n 6 33 0 (d )(1 ) p et i t i o ner t i m el y fi l eda p et it i o n
s eek i n g rev i ew o f res p o nd en t ’ s d et erm i n at i o n t o s u s t ai n th e p ro p o s edl ev y . Th e i s su e fo r d eci s i o n i s wh et her res p o n d en t ’ s Offi ce o f Ap p eal s (Ap p eal s Offi ce) p ro p erl y s u s tai n ed th e n ot i ce o f i n t en tt o l ev y .

FINDINGS OF FACT So m e fact s h av e b een s t ip u l at ed an dare s o fo u n d. Th e s t ip u l at i o n o f fact s
an d t h e at t ach edex h i b i t s are i n co rp o rat edh erei n b y th is referen ce. Pet i t i o n er
res i dedi n W i s co n s in wh en t h e p et i t io n was fi l ed
. Pet i t i o ner u n t i m el y

fi l edFed eral i n co m e t ax retu rn s fo r t h e y ears ati s s u e
an d fai l edt o p ay

th e b al an ces o wed . On M ay 3 0 , 2 0 1 6 , res p on d en tm ai l ed p et i t i o n er a n o t i ce o f i nt en tt o l ev y wi t h res pect t o p et i t i o ner’ s t ax l i ab i l i t i es fo r t h e y ears ati s s u e. Th e n o t i ce o f i n t en tt o l ev y l i s t edd efi ci en ci es , p en al t i es , an d i n t eres to wedfo r t h e y ears at i s s u e t o t al i n g $ 8 ,9 2 7
. OnJ u ne 1 2 , 2 01 6 , p et i t i o n er t i m el y s ub m i tt eda Fo rm

1 2 1 5 3 , Req u es tfo r a Co l lect i on Du e Pro ces s o r Equ i v al en tHeari n g (CDP). 2 Pet i t i o n er s t at edas a

1 Al l s ect i o n referen ces are t o th e In tern al Rev en u e Co d e i n effect atal l rel ev an t t i m es , an d al l Ru l e referen ces are t o the Tax Co urtRu l es o f Pract ice an d Pro cedure. Al l d o l l ar am o u n t s are ro un d ed t o t h e n eares td o l lar.

2 On p et i t i o ner’ s CDP req u es th e i n co rrect ly l i s t ed t he t ax y ears s h o wno n t h e n o ti ce o f i n t en tt o l ev y as 2 0 0 7 th ro u g h 2 0 1 2 . Ad d it i on al l y , p et i t i o n er (co n ti n u ed ...)- 3
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[* 3 ] reas on fo r th e requ es t th atres p o nd en t ’ s “ b il li n g s u m m ary ” i s i n co rrect . In
s up p orto f t h i s as s ert io n p et i t i o n er d i rect edth e Ap p eal s Offi ce’ s at t en t i o n t o “ o v er 5 0 d o cu m en t s ” h e al l eg ed l y fi ledwi t h res po n d en t
. 3 Pet i t i on er fai l edt o ex p l ai n h o w h e d et erm i n edth atres p o n d en t ’ s b i l l i n g s u m m ary was i naccu rat e o r h o w th e 5 0 d o cu m en t s h e cl ai m ed t o fi l e d em on s t rat edi n accu raci es i n res p on d en t ’ s b i l l i n g
s u m m ary . Pet i t io ner al so s t at edth ata refu n dn o t i ce co ncern i n g t ax y ear 2 0 0 9 i s i n co rrect . He fai l edt o ex p l ai n th e rel ev an ce o f t h e 2 0 0 9 refu n d n o t i ce t o h i s t ax l i ab i l i t i es fo r t h e y ears ati s su e. Ad d i t i o nal l y , p et i t i o n er req u es t ed co l l ect i on al t ern at i v es an d s p eci fi cal l y ch eck edth e b o x m ark ed“ Offer i n Co m p ro m is e”. Pet i t io n er al s o req u es t edi n no cen t s po u s e rel i ef b u tfai ledt o s ub m i tFo rm 8 8 5 7 , Req ues t fo r In n o cen tSp o u se Rel i ef, wi t h t h e CDP req u es tas i n s tru ct ed
.

2 (...co n t in u ed ) i n co rrect l y

s t at edth ath i s b as i s fo r m ak i n g th e CDP req u es twas h i s recei p to f a n o t i ce o f Fed eral t ax l i en (NFTL) fi l i n g an dth e n o t i ce o f i n t en tt o l ev y . No NFTL was fi l edag ai ns t pet i t i o ner fo r t h e y ears ati s s ue. Ad d i t i o n al ly , n ei t her an NFTL n o r a n ot i ce o f i nt en tt o l ev y was i ss u edt o p et i t i o n er fo r t ax y ears 2 0 0 7 t h ro u g h 2 0 1 0 . As a res u l tth e s et t l em en to ffi cer (SO) d et erm i n edp et i t i o n er was n o t en t i t l edt o a CDP h eari n g o n th o s e i ss u es .

3 In h i s CDP req u es tp et i t i o n er referred t o a p et it i on h e fi l edo n J un e 6 , 2 0 1 6 , s eek i n g rel i ef fo r t ax y ears 2 00 7 th ro u g h 2 0 1 0
. Th e Co u rt d i s m i s s edth atcas e i n an o rd er o n th e g ro un dthatn o n o t ice o f d et erm i n at i o n h adb een i s s u edt o p et i t i o n er fo r t ax y ears 2 0 0 7 th ro u g h 2 0 1 0 thatwo u ldp erm i t p et i t i o n er t o i n v o k e t h e Co u rt ’ s juri s d i ct io n. Sch u m an v . Co m m i s si o n er, T.C. Dkt . No . 1 3 16 6 -1 6 (Oct . 6 , 2 0 1 6 ).- 4
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[* 4 ] Pet i t i o ner’ s CDP req u es twas as si g n edt o an SO wi t h n o p ri o r i n vo l v em en t wi t h th e l i ab i l i t i es ati ss ue. On Au g u s t 2 4 , 2 0 1 6 , th e SO s en tp et i t i o n er a l et t er
s ch edu l i n g a t el ep h o n e CDP h eari n g fo r Sep tem b er 2 7 , 2 0 1 6 . Th e l et t er al s o p ro p os eda s t ream l i n edi n s t al l m en tag reem en tu n der wh i ch p et i t i o n er wo u l dp ay $ 1 4 2 p er m o n t h u n t i l the t ax o wed i s p ai d . Fo r p u rp os es o f d i s cu s s i n g co l l ect i o n al t ern at i v es th e SO requ es t edth at p et i t i o n er s ub m i tFo rm 6 5 6 , Offer i n Co m p ro m i s e, o r Fo rm

4 33 -A, Co l l ect i o n In fo rm at i o n St at em en tfo r W ag e Earn ers
an d Sel f-Em

p l o y edIn d i v idual s , o r b o t h, wi t h req u i redat t ach m en t s b efo re t h e h eari n g . Th e SO al s o i n st ru ct edp et i t i o n er t h at , i f h e wi s h edt o d i s p ut e t h e
u n d erl y i n g l iab il i ti es t o th e ex t en trep ort edo n h i s t ax retu rn s , h e m u s t s ub m i tfo r
co n si d erat io n Fo rm s 1 0 40 X, Am en d edU.S. In d i v i dual In co m e Tax Retu rn (am en dedretu rn s ). Si n ce p et i t i o n er req u es t edi n n o cen ts p o u se rel i ef, t h e SO req u es t edth at p et i t io n er s ub m i tFo rm 8 8 57 b efo re t h e h eari n g . Pet i t i o n er n ev er
s ub m i t t edFo rm 6 5 6 , Fo rm 4 3 3-A, am en d edretu rn s , o r a requ es tfo r i n n ocen t
s p o u se rel i ef as d i rect ed b y t h e SO. In res p o n s e t o t h e SO’ s l et t er d at edAu g us t2 4 , 2 0 1 6 , p et i t i o n er s en t a l et t er d at edSep t em

b er 8 , 2 0 1 6, wh i ch co n fi rm edh i s i n t en ti o n t o p art i ci p at e i n t h e t el ep ho n e CDP h eari ng s ch edu l edfo r Sep t em b er 2 7 , 2 01 6 . Pet i ti o n er at tach ed d o cu m en t at i o n t o t h e l et t er t h atat t em p tedt o s ub s t an t i at e t he i s s u es ad dres s edi n- 5
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[* 5 ] h i s CDP req u es t . On e s u ch at t ach m en twas a s p read s h eeth e h adcreat ed , o u t l i ni n g p aym en t s h e al l eg ed l y m ad e t o w ardt ax y ears en d edDecem ber 3 1 , 2 0 0 9 t h ro u g h 2 0 1 6
. 4 Pet i t i o n er fai ledt o ex p lai n h o wth e fi g u res i n t h e s p read s heet ch al l en g edth e b al an ces o wedfo r t h e y ears ati s s u e. Befo re t h e CDP h eari n g th e SO rev i ewed t h e d o cu m en t at i on s ub m i t t edwi t h p et i t io n er’ s l et t er an dd et erm i n ed t h atn o n e o f i t p ert ai n edt o th e b al an ces o wedfo r t h e y ears ati s s u e. OnSep t em

b er 2 7 , 2 0 1 6 , du ri n g th e t el ep h o n e CDP h eari n g p et i t io n er
reas sert edth at res p on d en t fai l edt o p ro p erl y ap p l y p aym en t s thath e cl ai m edh e h ad m ad e t o wardth e b al an ces fo r t h e y ears ati s s u e. Pet i t i o n er d idn o t d es i g n at e h o w h e wan t edres p o n den tt o ap p l y th e al l eg edm i s ap p l i edp aym en t s . Du ri n g th e CDP h eari n g th e SO rev i ewedwi t h p et i t i o n er h i s acco u n t t ran s cri p t s fo r t ax y ears 2 0 07 th ro u g h 2 0 1 2 , wh i ch co n fi rm edth atth ere were n o
m i s s i n g o r m i s ap p l i edp aym en ts affect i n g th e y ears ati s s u e. Th e SO v eri fi edth at p et i t i o n er’ s u n derp aym en ts o f t ax res u lt edfro m i n s u ffi ci en tFed eral wi th h o l d i n g
o r fro m h i s fai l u re t o m ak e n eces s ary es t i m at edt ax p aym en t s o n h is earn edi n co m e rep o rt edo n h i s t ax return s o r b o t h . Th e SO al s o p art i al l y ab at eda fai l u re t o p ay

4 Attri al p et i ti o n er t es t i fi edth ath e co m p ared th e fi g ures i n h i s s p read s h eet ag ai n s tres p on d en t ’ s acco un ttran s cri p t s an d co ncl u d edth atth e am o u n t s rep o rt ed as o wedfo r t h e y ears at i s s u e were i n accu rat e. Bu tp et i t i o ner co u l dn o ts up p o rt h i s as s ert i o n th atp aym en ts al l eg ed l y m ad e t o w ardth e y ears ati s s u e were i m p ro p erl y ap pl ied
.- 6
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[* 6 ] p en al t y

o f $ 2 2 3 fo r 2 0 0 9 b ecau s e p et i t i o n er q u al i fi edfo r “ Fi rs tTi m e Pen al t y ” ab at em en t . Pet i ti o n er o ral l y ag reed t o the s t ream l i n edi n s t al l m en t ag reem en t p ro p os edb y t h e SO i n l et ter s en tAu g u st2 4 , 2 0 1 6
. Th e SO al s o n o t edth atn o s t atu t o ry n o t ice o f d efi ci en cy

was i s s u edfo r t h e y ears ati s s u e an d i n s t ru ct edp et i t i o n er t o s ubm i tam en d edretu rn s i f h e wi s h edt o ch al l en g e t h e am o u n ts o f t ax o wed . Th e SO fu rt her i ns t ru ct edp et i t i o ner, i f h e
wan ted i nn o cen ts p ou s e rel i ef, t o s ub m i tFo rm 8 8 57 . Pet i t i on er fai l edt o s ub m i t ei t h er t h e am en d edretu rn s o r Fo rm 8 8 5 7
. OnSep t em

b er 2 7 , 2 0 1 6 , th e SO s en t p et i ti o n er a l et t er en cl o s i n g Fo rm 4 3 3
- D, In s t al l m en tAg reem en t , an dFo rm 1 2 2 5 7 , Su m

m ary No t i ce o f Det erm i n at i o n , W ai v er o f Ri g h tt o J u d i ci al Rev i ew o f a Co l l ect i o n Du e Pro ces s Det erm i n at i o n , W ai v er o f Su s p en si o n o f Lev y Act i o n , an dW ai v er o f Peri o d s o f Li m i t at io n i n Sect i o n 6 3 3 0(e)(1 ). Th e SO i n s t ru ct edp et i t i o n er t o rev i ew, s ig n , an dretu rn th es e fo rm s b y Oct ob er 1 8 , 2 0 1 6 . Pet i t io n er d i dn otretu rn ei t her fo rm d es p i t e h av i n g
o ral l y ag reed t o th e p ro p o s edi n s t al lm en tag reem en tdu ri n g th e CDP h eari n g . OnOct o b er 1 4 , 2 01 6 , p et i t i on er m ai l eda l et t er t o th e Ap p eal s Offi ce i n wh i ch h e s tat edh is b el i ef t hatth ere are i n co n s i s t en ci es reg ard i n g h i s t ax l i ab i l i t i es
an d t h ath e i nt en d edt o req u es ta h eari n g b efo re t h is Co u rt
. OnNo v em b er 2 1 ,- 7
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[* 7 ] 2 0 1 6 , th e Ap p eal s Offi ce i s s u edth e n o t i ce o f d et erm i n at i o n s u s t ai n i n g th e
n o t i ce o f i n t en tt o l ev y . OnDecem

b er 1 6, 2 01 6 , p et i t i on er t i m el y fi l eda p et i t i o n wi t h th i s Co u rt al l eg in g th atres p o n d en td et erm i n edi n co rrect am o un t s o wedfo r t ax y ears 2 0 1 0 , 2 0 1 1 , an d2 0 1 2
. 5 OnNo vem

b er 6 , 2 0 1 8 , res p o n d en tfi l ed a m o t i on fo r s u m m ary ju d gm en t
. OnM arch 2 5 , 2 0 1 9 , th i s cas e was cal ledfro m th e cal en d ar atthe Co u rt ’ s M i l w au k ee, W i s co n s in , tri al s es s i o n . Th e p art ies ap p eared an d were h eard . As a
res u l t o f t h e t ri al res p o nd en t ’ s m o t i o n fo r s umm ary ju dg m en twas d en i ed
.

5 Pet i t i on er d i dn o trecei v e a n o t i ce o f i n ten tt o l ev y fo r t ax y ear 2 0 1 0 an d was n oten ti t ledt o a CDP h eari n g o n i s s u es s t emm i n g fro m th aty ear. Ad d i t i o n al l y , th e p et it i o n s t at es th atth e SO fo u n d s ev eral erro rs m ad e b y res p o n d en t, s p eci fi cal l y

referen ci n g a 2 0 0 9 ch eckfo r $ 2 4 3 . Th i s i s a referen ce t o t h e ch eckfo r a refu n d an drel at edab at em en t o f a “ Fai l u re t o Pay ” p en al t y i s s u ed fo r t ax y ear 2 0 0 9 an dd o es affect the t ax o wedfo r t h e y ears ati s s u e. Th e p et i t i o n al s o refers t o a $ 1 ,2 0 0 refu ndch eckrel at edt o t ax y ear 2 0 0 7 , wh i ch i s al s o i n ap p l i cab l e t o th e y ears at i s s u e. Th e p et it i o n al s o as s ert edth at an $ 8 0 0 cred i t fro m t ax y ear 2 0 0 9 was n o tp ro p erl y ap p l ied , thata $ 4 0 0 cred i t was n o tp ro p erl y ap p li edt o th e co rrect m on t h an dy ear, an d t h ata $ 30 0 cred itwas n otp ro p erl y ap p li edt o th e co rrect m on t h an dy ear. Th es e cred i t s are i rrel ev an t t o th e l i ab i l i t i es fo r t h e y ears ati s su e an dwere ap p ro p ri at el y ap pl i edt o th e co rrect t ax y ears .- 8
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[* 8 ] OPINION I. St an dard o f Rev i ew Sect io n 6 3 3 0 req u i res th e Co m m is s i o n er t o n o t i fy

a t ax p ay er i f h e i nt en d s t o l ev y o n th att ax pay er’ s p ro p ert y . Th e n ot i ce m u s ti n fo rm

th e t ax p ay er o f h i s o r h er ri gh t t o a CDP h eari n g reg ard i n g t h e p ro p o s ed co ll ect i o n act i o n . Sec. 6 3 3 0(a). In a CDP h eari n g t ax p ay ers m ay rai s e an y rel ev an t i ss ue, s u ch as a req u es t fo r
co n si d erat io n o f a co ll ect i o n al t ern at i v e. Sec. 6 3 3 0(c)(2 )(A). A d et erm i n at i o n t o
s u s t ai n a p ro p o s edl ev y

m ay b e rev i ewedb y

th i s Co u rt . Sec. 6 33 0 (d )(1 ); s ee Ru l es 3 3 0 -3 3 4
. In g en eral , up on rev i ew o f a n o t ice o f d et erm i nat i o n s u s tai n i n g a p ro p os edl ev y , the Co u rtwi l l l i m i ti t s rev i ew t o th os e i s s u es p ro p erl y rai s eddu ri n g t h e ad m in i s t rat i ve h eari ng . Gi am el l i v . Co m m i s s i o n er, 1 29 T.C. 1 0 7 , 1 1 4-1 1 5 (2 0 0 7); M ag an a v . Co m

m is s i o n er, 1 1 8 T.C. 4 8 8 , 4 9 3 (2 0 0 2). Wh ere t h e u n d erl y i n g t ax l i ab i l i t y i s p ro p erl y

at i s s ue i n a CDP p ro ceed i n g , we rev i ew t h at i s s u e d e n o v o . Seg o v . Co m m is s i o n er, 1 14 T.C. 6 0 4, 6 1 0 (2 0 0 0 ). To th e ex t en tth at t h e u n d erl y i ng t ax l i ab i l i t y i s n o tati s s u e, t h i s Co u rtrev i ews th e d et erm i n at i o n o f t h e Ap p eal s Offi ce fo r ab u s e o f d i scret io n . 6 Id . Ab u s e o f

6 Al t h o ug h p et i t i o n er’ s arg u m en t o st en s i b l y ch al l en g edth e v al i d i t y

o f t h e u n d erl y i n g t ax l iab i l i t i es , h i s arg u m en tfai l edt o co m m u ni cat e a p ro p er ch al l en g e t o the m eri t s o f t h e l i ab i l i t i es . Pet it i o n er d i dn o td i s p u t e t he v al i d i t y o f t he u n d erl y i n g l iab il i ti es . In s t ead , h e as s ert edth atres po n d en t ’ s fai l u re t o p ro p erl y (co n ti n u ed ...)- 9
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[* 9 ] d i s cret i o n ex i s t s wh en a d et erm i n at i o n i s arb i t rary , cap ri ci o u s , o r wi t h o u t
s o u n d b as i s i n fact o r l aw. See M u rp h y v . Co m m i ss i o ner, 1 25 T.C. 3 0 1, 3 2 0 (2 0 0 5), aff’ d , 4 6 9 F.3 d2 7 (1 s t Ci r. 2 0 0 6 ). II. An al y s i s Pet i t i o ner ch al len g edth e am o u n to f t ax o w eddu ri n g th e CDP h eari n g o n t h e g ro u n d s thath e b el i ev ed res p o n d en th adfai l edt o acco u n t fo r an dm i s ap p l i ed cert ai n p aym en t s . Al t h o u g h p et i t i o n er p ro v id eda s p read s h eetat tem p t i ng t o
o u t l i ne t h e al leg edm i s ap p l i ed p aym en t s , th e SO d et erm i n edth atth i s an do t h er d o cu m en t at i o n p ro vi dedb y p et i t i o n er was n o t p ert i n en tt o th e y ears ati s s u e. Th e SO acco u n t edfo r al l p aym en ts an d refu n d s fo r t h e y ears at i s s u e. Th e SO al s o g u i d edp et i t i o ner t h ro u g h h i s acco u n ttran s cri p t s fo r y ears 2 0 0 7 t h ro u gh 2 0 1 0 du ri n g th e CDP h eari n g i n ord er t o ex p l ai n t h atth ere were n o m is ap p li ed p aym en t s. W e fi n dthatp et i t i o n er h as n o tad du ced an y ev i d en ce t h atth es e t ran s cri p t s are i n co rrect
.

6 (...co n t in u ed ) ap p ly cert ai n p aym en t s res u l t edi n i n co rrect am o u n ts o f t ax du e an d o wi n g . Tax pay ers are req u i redt o p ro v i d e al l rel ev an ti n fo rm at i o n req u es t edb y t h e Ap p eal s Offi ce. Sec. 3 0 1 .6 3 30 -1 (e)(1 ), Pro ced
. & Ad m i n . Reg s . Pet i t io n er fai l ed t o s ub m i t am en d edreturn s as i n s t ru ct edb y t h e SO o r o th erwi se p res en tev i d en ce cred i b l y cal l i n g i n t o qu es t i o n th e u n d erl y i n g l i ab il i ti es aft er b ei n g g iv en reas on ab l e o p p o rtun i t y

t o p res en ts u ch ev id en ce. Th us , p et i t i o n er d i dn ot rai s e a p ro p er ch al l en ge t o t h e u n d erl y i n g l iab i l it i es . See Gi am el li v . Co m m i s s i o n er, 1 2 9 T.C. 1 0 7 , 1 1 3 (2 0 0 7 ); s ec. 3 0 1 .6 3 2 0 -1 (f)(2 ), Q&A-F3 , Pro ced . & Ad m in . Reg s .- 1 0 -

[* 1 0 ] Al t h ou g h p et i t i o n er cl ai m s th atth ere were m i s s i n g an d m i sap p l i edp aym en t s t h atwo u l dl o wer t h e b al an ces fo r t h e y ears ati s s u e, p et i ti o n er fai l ed t o d es i g n at e h o w h e wan t edan y

o f t h es e al leg edp aym en t s t o b e ap p l i ed . W i th o u ts u ch d es i g n at i o n , th e In t ern al Rev en u e Serv i ce m ay ap p ly p aym en t s i n t h e Go v ern m en t ’ s b es ti n t eres t s an di n th i s cas e wo u l db e free t o ap p l y p aym en t s t o t h e earl i es ty ears wi t h b al an ces du e. See Un i t edSt at es v . Sch ro ed er, 9 0 0 F.2 d 1 1 4 4 , 1 1 4 9 (7 th Ci r. 1 9 9 0 ); s ee al s o Bu ffal o w v . Un it ed St at es , 1 0 9 F.3 d5 7 0 , 5 7 4 (9 t h Ci r. 1 9 9 7 ). In d eci d i ng wh et her t h ere was an ab u se o f d i s cret i on i n th e s us t ai n i n g o f a
n o t i ce o f i n t en tt o l ev y , we rev i ew t h e reco rdt o d et erm i n e wh et h er t h e SO (1 ) p ro p erl y

v eri fi edth atth e req u i rem en t s o f ap p l i cab l e l aw an dad m i n i s t rat i v e p ro cedure h av e b een m et , (2 ) co n s i d ered i s su es rai s edb y th e t ax p ay er, an d (3 ) co n s i d ered wh et h er an y p ro p o s edco ll ect i o n act i o n b al an ces th e n eedfo r t h e effi ci en tco l lect i o n o f t ax es wi t h th e l eg i t i m at e co n cern o f t h e t ax pay er t h atan y
co l l ect i o n act i on b e n o m o re i n t ru s i v e t h an n eces s ary . See s ec. 6 3 3 0 (c)(1 ), (2 ),
an d (3 ).- 1 1 -

[* 1 1 ] Ou r rev i ew o f t h e reco rdes t ab li s h es th at t h e SO v eri fi edth atth e req u i rem en t s o f ap p l icab l e l aw an dad m i n i st rat i v e p ro cedu re h adb een m et
. 7 Fu rt h er, we fi n dthatthe SO b al an cedth e n eedfo r effi ci en tco l l ect i o n o f t ax es wi t h th e l eg i t i m at e co n cern o f p et i t i o n er t h atan y co l l ect i on act i o n b e n o m o re i n t ru si v e t h an n eces s ary . 8 Th e SO t o o k i n t o co ns i derat i o n al l i s su es p et i t i o n er rai s ed . Pet i t i o n er rai s ed i n n o cen t s p o u s e rel i ef i n h i s req u es tfo r a CDP h eari n g b u tfai l edt o s ub m it Fo rm 8 8 5 7 o r p ro v id e t h e SO wi t h an y o t h er i n fo rm at i on s up po rt i n g a b as i s fo r i n n o cen t s p o u s e rel i ef. An i s s u e i s n o t p ro p erl y rai s ed i f t h e t ax p ay er fai l s t o p res en tth e Ap p eal s Offi ce wi t h an y ev id en ce wi t h res p ectt o th ati s s u e aft er b ei n g

7 Th e CDP h eari n g was co n du ct edb y an o ffi cer o r em

p l o y ee wh o h adn o p ri o r i nv o l v em en t , p er s ec. 6 3 3 0 (b )(3 ). Th e SO rev i ewed al l o f p et i t i o n er’ s t ax acco u n t tran scri p ts b efo re t h e CDP h eari n g an dd is cu s s ed p et it i on er’ s acco u n t t ran s cri p t s wi t h h i m

duri n g t h e CDP h eari n g . See M ay v . Co m m i s s i o n er, T.C. M em o. 2 0 1 4 -1 9 4 ; M ed . Pract ice So l s ., LLC v . Co m m i s s i o n er, T.C. M em o . 2 0 1 0
- 9 8 . Th e SO v eri fi edth e p ro p er an dt im el y as s es s m en to f t h e l i ab i l i t i es as req u i red b y s ec. 6 3 0 3 (a). Th e SO fu rt her v eri fi edth at p et it io n er was g i v enth e req u i red n o t i ce o f i n t en tt o l ev y

p er s ec. 6 3 3 0 (a).
8 In h i s CDP req u es tp et i t i o n er i nd i cat ed t h ath e wan t edt o s ub m i tan o fferi n -co m p ro m is e, b u t h e fai l edt o s ub m i tFo rm 6 5 6 o r s up po rt i n g fi n an ci al i n fo rm at i o n as i n st ru ct edb y th e SO. Du ri n g the h eari ng p et i ti o n er ag reed t o a p ro p os eds t ream l i n edi n s t al l m en tag reem en to f $ 1 4 3 p er m o n t h . Th e Ap p eal s Offi ce s ub s eq u en tl y

m ai l edp et i t i o n er Fo rm

4 33 -D an d Fo rm

1 2 2 5 7 , b u tp et i t i o n er d i dn o t return th e s ig n edfo rm s as req u es t ed . Pet i t i o n er d idn o t req u es tan y o t h er co l l ect i o n al t ern at i v es .- 1 2 -

[* 1 2 ] g i v en reas o n ab l e o p p o rtu n i t y t o p res en ts u ch ev i d en ce. See s ec. 3 0 1 .6 3 3 0
- 1 (f)(2 ), Q&A-F3 , Pro ced
. & Ad m i n . Reg s . Inad d i t i o n, p et i t i o n er h as n o tp u rs u ed i n n o cen t s p o u s e rel i ef i n th i s p ro ceed i n g . Thu s , i n no cen t s po u s e rel i ef i s n o tat i s su e i n t h i s cas e. In th e l i g h to f o ur fi n di n g s ab o v e, we s u s t ai n th e n ot i ce o f d et erm in at i o n . W e h av e co n s id ered al l t h e o t h er arg u m en ts o f t h e p art i es , an d t o t h e ex t en tn o t d i s cu s s edab o v e, fi n dth o s e arg u m en t s t o b e i rrel ev an t , m o o t , o r wi t ho u tm eri t
. To refl ectthe fo reg o i n g , Deci s i o n wi ll b e en t eredfo r
res p o nd en t
.