Court has jurisdiction to review equivalent hearings.

• Author: O'Driscoll, David
• Position: Tax Court

The IRS mailed two final notices of intent to levy to P, who timely requested a hearing under Sec. 6330, as to both notices. A, an appeals officer, held an "equivalent hearing" with P under Regs. Sec. 301.6330-1(i). At the hearing, A mistakenly informed P that P was not entitled to a regular hearing because P's hearing request was untimely. A later issued a decision letter to P sustaining the proposed levy and stating that P did not have a right to judicial review of the decision. P petitioned the Tax Court under Sec. 6330(d)(1) to review the determination. The Tax Court must decide as a matter of first impression whether it has jurisdiction under Sec. 6330(d)(1), given that the IRS never issued a notice of determination for a Sec. 6330 hearing.

Analysis

The Tax Court's jurisdiction under Sec. 6330(d)(1) depends on the issuance of a valid determination notice and a timely petition for review; see Goza, 114 TC 176 (2000); Lunsford, 117 TC 159 (2001). Because P's petition was timely filed, the Tax Court must decide whether the IRS has made a "determination" within the meaning of Sec. 6330(d)(1). The IRS acknowledges that P did not have the hearing described in Sec. 6330, but that the decision letter issued to P as to the equivalent hearing reflects a "determination" sufficient to invoke the court's jurisdiction under Sec. 6330(d)(1).

Under Sec. 6330, a taxpayer has a right to a "hearing" with an Appeals officer before a levy on his or her property, provided the hearing request is timely The taxpayer may raise any relevant matter set forth in Sec. 6330(c); the Appeals officer may make a "determination" on those matters. Sec. 6330(d)(1) gives the taxpayer the right to contest the Appeals officer's determination in the appropriate judicial forum, precludes the IRS from proceeding with the proposed levy and suspends the applicable limitation periods.

The rules for an equivalent hearing stem from the statute's legislative history and the regulations implementing Congressional intent; see H. Rep't No. 105-599 (1998), at 266 (if a taxpayer does...