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deficiency for the tax liability or did not otherwise have an
opportunity to dispute the tax liability. Sec. 6330(c)(2)(B).
Where the validity of the underlying tax liability is
properly in issue, the Court will review the matter de novo.
Where the validity of the underlying tax is not properly in
issue, however, the Court will review the Commissioner’s
administrative determination for abuse of discretion. Sego v.
Commissioner, 114 T.C. 604, 610 (2000); Goza v. Commissioner, 114
T.C. 176, 181-182 (2000). A person may challenge a self-assessed
liability reported on his return where he or she has not had the
opportunity to dispute the liability. Montgomery v.
Commissioner, 122 T.C. 1, 9 (2004). An opportunity to dispute
such a liability includes a suit by respondent to reduce a tax
assessment to judgment. See MacElvain v. Commissioner, T.C.
Memo. 2000-320.
The record in the instant case clearly indicates that
petitioners had ample opportunity to dispute the liability
reported on their amended tax return for 1989 and the $13,858
section 6662 penalty for that year. Petitioners litigated the
issue of whether respondent failed to apply the payment from
Commonwealth to taxable year 1989 in District Court and on appeal
to the Third Circuit Court of Appeals. The Third Circuit Court
of Appeals affirmed the District Court’s judgments against
petitioners reducing the assessments, including the assessment
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