Joseph D. and Wanda S. Lunsford v. Commissioner of Internal Revenue

Summary

The Tax Court sustained the Appeals officer's section 6330 determination, holding that she did not abuse her discretion by verifying the assessments with a Form 4340 or by refusing to produce other requested documents or witnesses, and that the Commissioner may proceed with the proposed levy for 1993-1995 income taxes. Because petitioners' pleadings and trial memorandum raised only the assessment-verification question - an issue the court had already resolved in Davis - the court declined to remand for another Appeals hearing and denied the Commissioner's request for a section 6673(a)(1) penalty. Judges Laro, Foley (joined by Chiechi, Vasquez, and Marvel), and Colvin (joined by Gale) dissented, contending that section 6330(b)(1) mandated an actual hearing that the exchange of correspondence could not replace; Judge Halpern, joined by Whalen, Beghe, and Thornton, concurred in the result.