Michael Patrick and Debye Lee Leahy - Page 6

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          the instant section 6330 collection case qualifies for the small            
          tax case procedures.  Therefore, we look to the amount of “unpaid           
          tax” that respondent has determined to collect, not the amount of           
          the underlying tax liability in dispute, to decide whether this             
          case may proceed under the small tax case procedures of section             
          7463(f)(2).  Schwartz v. Commissioner, supra.9                              
               It is true that, in certain limited circumstances, a                   
          taxpayer can dispute all or a portion of the “underlying tax                
          liability” in a section 6330 collection case.  See Goza v.                  
          Commissioner, 114 T.C. 176, 180-182 (2000).  However, the fact              
          that petitioners are disputing less than $50,000 of the                     
          underlying tax liability has no relevance to the application of             
          the dollar limit in section 7463(f)(2).  Section 7463(f)(2)                 
          applies to the case of “an appeal under section 6330(d)(1)(A) to            
          the Tax Court of a determination in which the unpaid tax does not           
          exceed $50,000.”  (Emphasis added.)  We hold that for a case to             
          qualify for the small tax case procedures under section                     
          7463(f)(2), the total amount of unpaid tax that the Commissioner            
          has determined to collect cannot exceed $50,000.  The amount of             
          the underlying tax liability in dispute is irrelevant.                      
               Respondent cites Schwartz for the proposition that the                 
          amount of “unpaid tax” (including interest and penalties) should            

               9 In Schwartz, the taxpayers were not disputing the amount             
          of their underlying tax liability.  Schwartz v. Commissioner,               
          supra at 10 n.6.                                                            

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