Hugh D. Summers and Teresa E. Summers - Page 14

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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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