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by virtue of his making a submission to the Appeals Office in
response to the Letter 105C (i.e., petitioner’s Appeals request).
A. Challenges to Self-Assessed Amount
A portion of the underlying tax liability was reported by
petitioner as due on his return. Under Montgomery v.
Commissioner, supra, petitioner was entitled to challenge that
portion of the liability. Petitioner’s earlier Appeals request
concerned only the liability arising from respondent's
disallowance of petitioner's claimed capital losses exceeding
$3,000. Thus, the Appeals employee's position that petitioner
was precluded from challenging any portion of the underlying
liability was erroneous.
B. Challenges to Section 6213(b)(1) Assessment
The remaining portion of the underlying tax liability is
attributable to the additional assessment made by respondent
pursuant to section 6213(b)(1), resulting from the disallowance
of petitioner’s claimed capital losses in excess of the $3,000
capital loss limitation of section 1211(b).8 The notice of
8 We are satisfied that respondent was entitled to make this
assessment under sec. 6213(b)(1). Petitioner's claimed
$55,778.28 capital loss constituted a "mathematical or clerical
error" within the meaning of sec. 6213(b)(1) because it was "an
entry on a return of a deduction * * * in an amount which exceeds
a statutory limit imposed by subtitle A [of Title 26]", which
limit "is expressed * * * as a specified monetary amount", and
"the items entering into the application of such limit appear on
such return". Sec. 6213(g)(2)(E). With regard to the last
requirement, we note that the Schedule D belatedly submitted by
petitioner disclosed to respondent that the claimed $55,778.28
(continued...)
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