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receiving the notice of deficiency, petitioners filed a petition
in this Court. That case was concluded without trial by entry of
a decision on August 20, 2003. The decision provided that there
was a “deficiency in income tax due from the petitioners for the
taxable year 1999 in the amount of $363.00.”
At the Appeals Office hearing and at trial in this case,
petitioners argued that payment of the 1999 deficiency entirely
extinguished any 1999 tax liability that was otherwise then-
outstanding, including the amount that resulted from the tax
reported due on their 1999 return. At the time of filing their
petition in their deficiency case, petitioners could have
challenged the tax liability reported due on their 1999 return,
but they did not.5
Petitioners received a notice of deficiency for 1999 and had
an opportunity to dispute their underlying tax liability for that
year.6 It follows that petitioners are barred under section
6330(c)(2)(B) from challenging the existence or amount of their
5 Petitioners’ case is distinguishable from Montgomery v.
Commissioner, 122 T.C. 1, 9 (2004), which held that sec.
6330(c)(2)(B) permits a taxpayer to challenge the existence or
amount of the tax liability reported on the original return if
they “have not received a notice of deficiency * * * and they
have not otherwise had an opportunity to dispute the tax
liability in question.”
6 In the present case, petitioners’ “underlying tax
liability” consists of the amount that petitioners reported due
on their 1999 tax return along with statutory interest and
penalties and the amount assessed following the issuance of the
notice of deficiency. See Montgomery v. Commissioner, supra.
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