-3-
recently held that a submission by the Internal Revenue Service
(IRS) in the taxpayer’s bankruptcy proceeding of a proof of claim
for unpaid Federal income taxes meant that the taxpayers had the
opportunity to dispute that liability for purposes of section
6330(c)(2)(B) and, accordingly, deprived us of the ability to
decide that liability. We directed petitioner and respondent to
discuss whether petitioner had a previous opportunity during
petitioners’ bankruptcy proceeding to dispute the underlying tax
liability for any or all of the subject years. Petitioner and
respondent argue in response to our order that Washington v.
Commissioner, 120 T.C. 114 (2003), allows the Court to determine
the amount of Federal income tax owing after a bankruptcy
proceeding.
We decide whether we may enter a decision as to petitioner
that reflects a determination of his underlying tax liability.
We hold we may not.
Background
We draw the following recitations from the pleadings and
other parts of the record. We set forth these recitations solely
for the purpose of this Memorandum Opinion. Petitioners resided
in Cincinnati, Ohio, when their petition was filed with the
Court.
Petitioners operated a landscaping business for nearly 30
years and failed to make estimated tax payments on their
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Last modified: May 25, 2011