Nield and Linda Montgomery - Page 42

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          respondent argue that petitioners otherwise had an opportunity to           
          dispute the unpaid tax within the meaning of section                        
          6330(c)(2)(B).6  Rather, respondent’s contention that                       
          petitioners’ obligation to pay the unpaid tax is not properly at            
          issue is based on his position that, as used in section                     
          6330(c)(2)(B), the term “underlying tax liability” is properly              
          interpreted to refer only to amounts asserted by the Internal               
          Revenue Service (IRS) in excess of the amount of tax reported by            
          the taxpayer on her return.  In the context of the income tax,              
          that amount would generally correspond to the amount of any                 
          deficiency assessed by the Commissioner and would exclude any               
          amount of self-assessed tax (such as the unpaid tax here in                 
          issue).  As previously discussed, the majority interprets the               
          term “underlying tax liability” in section 6330(c)(2)(B) to mean            
          “the amounts that the Commissioner assessed for a particular tax            


               5(...continued)                                                        
          “deficiency” essentially means the amount by which a person’s tax           
          liability exceeds the tax shown on the person’s return.  See sec.           
          6211(a).                                                                    
               6  Respondent’s regulations provide:  “An opportunity to               
          dispute a liability includes a prior opportunity for a conference           
          with Appeals that was offered either before or after the                    
          assessment of the liability.”  Sec. 301.6330-1(e)(3), Q&A-E2,               
          Proced. & Admin. Regs.  Without regard to sec. 6330(c)(2)(B), a             
          taxpayer’s subsequent disavowal of a reported and assessed, but             
          unpaid, income tax liability amounts to an informal claim for               
          abatement.  See Fayeghi v. Commissioner, T.C. Memo. 1998-297,               
          affd. 211 F.3d 504 (9th Cir. 2000).  Because such a claim has no            
          formal procedural significance, see sec. 6404(b), presumably it             
          is not subject to the Appeals process.                                      





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