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However, Congress foresaw the possibility that the parties and
the Court might, at any time prior to entry of decision, discover
that the relevant amount of tax exceeds the applicable
jurisdictional amount. Section 7463(d) thus provides:
SEC. 7463(d). Discontinuance of Proceedings.--At
any time before a decision entered in a case in which
the proceedings are conducted under this section
becomes final, the taxpayer or the Secretary may
request that further proceedings under this section in
such case be discontinued. The Tax Court, or the
division thereof hearing such case, may, if it finds
that (1) there are reasonable grounds for believing
that the amount of the deficiency placed in dispute, or
the amount of an overpayment, exceeds the applicable
jurisdictional amount described in subsection (a), and
(2) the amount of such excess is large enough to
justify granting such request, discontinue further
proceedings in such case under this section. Upon any
such discontinuance, proceedings in such case shall be
conducted in the same manner as cases to which the
provisions of sections 6214(a) and 6512(b) apply.
Section 7463(d) was enacted prior to section 7463(f) and does not
reference section 6330 collection cases. Nevertheless, the
procedures for discontinuance of small tax case proceedings
contained in section 7463(d) apply to “a case in which the
proceedings are conducted under this section”. Since it is now
apparent that this case does not qualify for small tax case
treatment under section 7463, section 7463(d) provides a logical
remedy.10
10 Sec. 7436(c) provides for availability of sec. 7463 small
tax case procedures in employment tax cases where the amount in
dispute is $50,000 or less for each calendar quarter and provides
for use of the discontinuance procedures in sec. 7463(d). Sec.
(continued...)
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Last modified: May 25, 2011