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The Underlying Liabilities
Although petitioners allege various errors in the deficiency
respondent determined with respect to 1991, they may not raise
these issues in the instant proceeding. The underlying
liabilities for 1991 that respondent seeks to collect4 were the
subject of a notice of deficiency that petitioners received.
Accordingly, pursuant to section 6330(c)(2)(B), petitioners are
precluded from challenging the existence or amount of the
underlying tax liabilities for 1991 in this proceeding.
The Bankruptcy Discharge
Petitioners also allege that they owe no tax for 1991
because all of their liabilities for that year were discharged in
the bankruptcy proceeding. Petitioners further note that they
amended their bankruptcy petition specifically to include their
1991 income tax liabilities. Respondent agrees that the return
assessment was discharged in that proceeding but contends that
the examination assessment was not.
We have jurisdiction to decide whether a tax liability for
which collection is at issue in a section 6330(d)(1) proceeding
has been discharged in bankruptcy. Washington v. Commissioner,
120 T.C. 114, 121 (2003).
Respondent argues that the examination assessment was not
4Respondent has abated the 1991 liability that petitioners
reported on their return for that year (i.e., the return
assessment).
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Last modified: May 25, 2011