Conrad Gorospe Shirley Gorospe v. Commissioner of Internal Revenue

AMENDED OPINION

OPINION

The appeal presents the question of whether the United States Tax Court has plenary jurisdiction to hear all appeals from collection due process (“CDP”) proceedings before the Internal Revenue Service (“IRS”). We reaffirm the principle that the Tax Court's jurisdiction over appeals from CDP determinations is limited to issues over which the Tax Court would have had jurisdiction to consider the underlying tax liability.

I

When a taxpayer fails to pay his federal taxes, after the IRS demands payment, the amount due becomes a “lien in favor of the United States upon all property and rights to property, whether real or personal, belonging to such person.” 26 U.S.C. § 6321 . The hen attaches immediately to the taxpayer’s property, 26 U.S.C. § 6322 , and becomes effective against certain third parties after the IRS has filed notice, 26 U.S.C. § 6323 (f). The IRS may enforce the lien by levying the property of the delinquent taxpayer. 26 U.S.C. § 6331 (a). The IRS must also notify a taxpayer before imposing a levy. 26 U.S.C. § 6331 (d).

Once the IRS has notified a taxpayer of its intent to file a notice of lien or to impose a levy, the taxpayer has the right…