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opportunity to dispute such tax liability”. The taxpayers argued
before the IRS that they had overstated their tax liability for
the taxable year 2000 on their original return and intended to
submit an amended return. Although the parties agreed that the
taxpayers would be permitted to submit an amended return, the IRS
Appeals Office issued the taxpayers a notice of determination
concerning collection action before the taxpayers submitted an
amended return. The taxpayers subsequently submitted an amended
return, but the record did not reflect whether the IRS considered
it.
We concluded in Montgomery that, as of the time of the
issuance of our opinion, the taxpayers had not had an opportunity
to dispute the underlying tax liability. We opined that since
the taxpayers did not have an earlier opportunity to dispute the
underlying tax liability, they came within the provisions of
section 6330(c)(2)(B) and could dispute the assessed amounts
reflected on the tax return in the context of the collection
proceeding.
In the present case, petitioner filed amended returns for
1990 through 1993 claiming a refund of taxes for those years.
Petitioner was notified by the IRS of a proposed disallowance and
was given an opportunity for a hearing in the IRS Appeals Office.
On November 2, 2000, the IRS Appeals Office issued a notice of
disallowance which explained that if petitioner disagreed with
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