T.C. Memo. 1996-314
UNITED STATES TAX COURT
PRISCILLA B. BADGER, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 15104-94. Filed July 11, 1996.
Priscilla B. Badger, pro se.
John T. Lortie, for respondent.
MEMORANDUM OPINION
HAMBLEN, Judge: By two separate statutory notices of
deficiency each dated May 18, 1994, respondent determined
deficiencies in the amounts of $19,124 and $18,956 in
petitioner's 1990 and 1991 Federal income tax, respectively.
Respondent further determined additions to tax for failures to
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file individual tax returns for the tax years 1990 and 1991 under
section 6651(a) in the amounts of $174.75 and $195.25,
respectively. Unless otherwise indicated, all section references
are to the Internal Revenue Code in effect for the 1990 and 1991
taxable years, and all Rule references are to the Tax Court Rules
of Practice and Procedure.
Respondent now concedes that no deficiencies and no
additions to tax are due from petitioner for 1990 and 1991, but
petitioner seeks a refund for her overpayments of 1990 and 1991
Federal income tax. The issue for decision is whether petitioner
is entitled to a refund or credit for overpayments of her 1990
and 1991 Federal income tax, or whether the statutorily imposed
time limitations of sections 6511 and 6512 preclude petitioner
from obtaining any portion of her 1990 and 1991 overpayments.
Background
This case was submitted fully stipulated pursuant to Rule
122. The stipulation of facts and the attached exhibits are
incorporated by this reference, and the facts contained therein
are found accordingly. Priscilla B. Badger (petitioner) resided
in Boca Raton, Florida, at the time the petition was filed in
this case.
Petitioner paid $18,425 and $18,125 of Federal income
withholding tax during the taxable years 1990 and 1991,
respectively. On May 18, 1994, respondent mailed to petitioner
two timely statutory notices of deficiency, one for the taxable
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year 1990 and one for the taxable year 1991. As of May 18, 1994,
petitioner had not filed income tax returns or claims for refund
for taxes withheld for either of the tax years 1990 or 1991.
During the period from May 18, 1992, through May 18, 1994,
petitioner made no payments of tax and received no credits for
withheld taxes or other credits for the tax years 1990 and 1991.
Petitioner filed her petition with this Court on August 22, 1994.
Subsequently, on October 20, 1994, petitioner filed her Federal
individual income tax returns for the tax years 1990 and 1991.
The parties now agree that petitioner's total Federal income
tax liabilities for the 1990 and 1991 taxable years are
$16,672.62 and $17,121.04, respectively. As a result of Federal
income tax withholding from her wages, petitioner paid taxes of
$18,425 and $18,125 during the taxable years 1990 and 1991,
respectively. These amounts are deemed to have been paid on
April 15, 1991 and 1992, respectively. Accordingly, petitioner
overpaid her 1990 and 1991 Federal individual income taxes by
$1,752.38 and $1,053.96, respectively.
Petitioner claims that she is entitled to a determination of
overpayment of her 1990 and 1991 Federal individual income taxes,
and that the overpayments should be refunded to her. Respondent
contends that petitioner is not entitled to a determination of
overpayment because of the jurisdictional limitations of sections
6511 and 6512(b).
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We hold that petitioner is not entitled to a determination
of overpayment, notwithstanding that she overpaid her 1990 and
1991 Federal individual income taxes.
Discussion
In Commissioner v. Lundy, 516 U.S. ____, ____; 116 S.Ct.
647, 652 (1996), the Supreme Court clarified the Tax Court's
jurisdiction under sections 6512(b)1 and 65112 to determine the
1
Sec. 6512(b) provides in relevant part:
(b) Overpayment Determined by Tax Court.--
(1) Jurisdiction to Determine.--Except as
provided by paragraph (3) * * *, if the Tax Court finds
that there is * * * a deficiency but that the taxpayer
has made an overpayment of such tax, the Tax Court
shall have jurisdiction to determine the amount of such
overpayment, and such amount shall, when the decision
of the Tax Court has become final, be credited or
refunded to the taxpayer.
* * * * * * *
(3) Limit on amount of credit or refund.--No
such credit or refund shall be allowed or made of any
portion of the tax unless the Tax Court determines as
part of its decision that such portion was paid--
(A) after the mailing of the notice of deficiency,
(B) within the period which would be applicable
under section 6511(b)(2), (c), or (d), if on the date
of the mailing of the notice of deficiency a claim had
been filed (whether or not filed) stating the grounds
upon which the Tax Court finds that there is an
overpayment, or
2
Sec. 6511 provides in relevant part:
(a) Period of Limitation on Filing Claim.--Claim
for credit or refund of an overpayment of any tax
(continued...)
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existence and amount of any overpayment of tax when a taxpayer
had not filed a return prior to the time the Commissioner mailed
a statutory notice of deficiency. The law is clear that when a
taxpayer failed to file a tax return or claim for refund prior to
the time the notice of deficiency was mailed, the taxpayer's
credit or refund generally is limited to those taxes paid within
2
(...continued)
imposed by this title in respect of which tax the
taxpayer is required to file a return shall be filed by
the taxpayer within 3 years from the time the return
was filed or 2 years from the time the tax was paid,
whichever of such periods expires the later, or if no
return was filed by the taxpayer, within 2 years from
the time the tax was paid. * * *
(b) Limitation on Allowance of Credits and
Refunds.--
(1) Filing of Claim Within Prescribed
Period.--No credit or refund shall be allowed or made
after the expiration of the period of limitation
prescribed in subsection (a) for the filing of a claim
for credit or refund, unless a claim for credit or
refund is filed by the taxpayer within such period.
(2) Limit on Amount of Credit or Refund.--
(A) Limit Where Claim Filed Within 3-
Year Period.--If the claim was filed by the taxpayer
during the 3-year period prescribed in subsection (a),
the amount of the credit or refund shall not exceed the
portion of the tax paid within the period, immediately
preceding the filing of the claim, equal to 3 years
plus the period of any extension of time for filing the
return. * * *
(B) Limit Where Claim Not Filed Within
3-Year Period.--If the claim was not filed within such
3-year period, the amount of the credit or refund shall
not exceed the portion of the tax paid during the 2
years immediately preceding the filing of the claim.
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the 2-year "look-back period" prior to the date of the mailing of
the notice of deficiency, as prescribed by section 6511(b)(2)(B).
Id.
Pursuant to section 6512(b)(3)(B), petitioner is deemed to
have filed a claim for credit or refund on May 18, 1994, the date
the notices of deficiency were mailed. Accordingly, under the 2-
year look-back period of section 6511(b)(2)(B), petitioner would
be entitled to a refund of any overpayments of her tax made on or
after May 18, 1992, for tax years 1990 and 1991. However,
because section 6513(b)(1) deems the tax withheld from
petitioner's wages during 1990 and 1991 to have been paid on
April 15, 1991 and April 15, 1992, respectively, no portion of
the tax was paid during the 2-year look-back period.
Consequently, we must hold that petitioner is not entitled
to a decision that she has an overpayment of her 1990 or 1991
Federal income tax, and, hence, no portion of the amounts
withheld from petitioner's wages during 1990 and 1991 may be
refunded or credited as an overpayment. Petitioner made no
payments during the 2-year look-back period preceding the date
the statutory notices of deficiencies were mailed, and she is
barred by section 6511(b)(2)(B) from obtaining any portion of her
1990 or 1991 overpayments. Although this result may seem harsh,
it follows directly from petitioner's failure, through her own
neglect, to fulfill her obligations to file a timely return or
otherwise to exercise her rights within the time period
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statutorily mandated by section 6511(b)(2)(B). We have
considered petitioner's arguments and find them unpersuasive.
To reflect the foregoing,
Decision will be entered for
petitioner as to the
deficiency
and additions to tax, and
petitioner is not entitled to
. credit or refund of
overpayment.