The Court of Appeals for the Seventh Circuit, in Our Country Home Enterprises, Inc., (CA 7 5/3/2017) 119 AFTR 2d ¶ 2017-729, affirmed the Tax Court and agreed with similar holdings by the Fourth and Tenth Circuits, has held that a portion of Reg. § 301.6330-1(e)(3) is a reasonable interpretation of the Code.
That portion specifies that a conference with the Appeals Office is a prior opportunity for purposes of the rule that precludes a taxpayer from raising the issue of his tax liability at a collection due process (CDP) hearing if he had a prior opportunity to dispute that liability.
Under § 6330(c)(4)(A)'s plain language, because Our Country Home raised the issue of its liability in a prior hearing before the Appeals Office, and because Our Country Home participated meaningfully in that hearing, Our Country Home could not contest its liability again in its CDP hearing.
Read more at: Tax Times blog