TC Memo 2016-186, Smith v. Commissioner was released and brings up interesting procedural issues for Collection Due Process Hearings (CDP).
In the case, the taxpayer wanted to raise whether or not he was liable for the taxes being collected. However, this was denied. A taxpayer may raise a doubt as to liability claim in a CDP hearing, but only if he has not previously had a chance to dispute the liability or he did not receive a statutory notice of deficiency for the liability.
The chance to challenge the determination also includes previous chances to go to a CDP hearing.
The procedural reasoning is pretty clear: taxpayers should get one bite at the apple and to allow multiple challenges to the same issue can take time away from more legitimate claims that the IRS needs to process.
Relevant Cites: TC Memo 2016-186
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