Theodore C. and Denise M. Schwartz - Page 12

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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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