Peggy A. Farley - Page 8

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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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