T.C. Memo. 1999-186
UNITED STATES TAX COURT
HUMES HOUSTON HART, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 9355-98. Filed June 8, 1999.
Humes Houston Hart, pro se.
Judith Cohen, for respondent.
MEMORANDUM OPINION
PANUTHOS, Chief Special Trial Judge: This case was heard
pursuant to section 7443A(b)(3)1 and Rules 180, 181, and 182.
1
Unless otherwise indicated, all section references are
to the Internal Revenue Code in effect for the year in issue.
All Rule references are to the Tax Court Rules of Practice and
Procedure.
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Respondent determined a deficiency in petitioner's 1994
Federal income tax in the amount of $2,171 and an addition to tax
pursuant to section 6651(a)(1) in the amount of $540.
Respondent concedes the deficiency and addition to tax in
full; thus, the only issue in dispute is whether petitioner is
entitled to an overpayment in the amount of $11.
At the time of filing the petition herein, petitioner
resided at Spring City, Pennsylvania.
During the taxable year 1994, petitioner received taxable
income. The taxable income was reported by various third-party
payors from "stock/bond" sales, "pension/annuities", dividends,
and interest. With respect to two of petitioner's bank accounts,
there were withholding credits totaling $11.
Petitioner did not file a Federal income tax return for the
taxable year 1994. Respondent mailed a notice of deficiency to
petitioner on May 11, 1998, determining the deficiency and
addition to tax. The notice of deficiency determined that
petitioner failed to file a return and failed to report various
items of taxable income referred to above. After petitioner
provided certain information to representatives of the Internal
Revenue Service (IRS), and after a review of this matter by the
IRS Appeals Office, respondent concluded that petitioner was not
required to file a Federal income tax return and was not liable
for a deficiency or an addition to tax.
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Petitioner claims that he is entitled to a determination of
an overpayment of his 1994 Federal income tax and that the
overpayment should be refunded to him. Respondent contends that
petitioner is not entitled to a refund of an overpayment because
of the limitations of sections 6511 and 6512(b).
Pursuant to section 6512(b)(1), we have jurisdiction to
determine the existence and amount of any overpayment of tax to
be credited or refunded for years that are properly before us.
However, if a taxpayer did not file a return before the notice of
deficiency was mailed, the amount of the credit or refund is
limited to the taxes paid during the 2-year period prior to the
date the deficiency notice was mailed. See secs. 6511(b)(2),2
2
Sec. 6511(a) generally provides that a claim for credit
or refund of an overpayment of tax must be filed by the taxpayer
within 3 years from the time the return was filed or within 2
years from the time the tax was paid, whichever period expires
later. Sec. 6511(a) also expressly provides that, if no return
is filed, the claim must be filed within 2 years from the time
the tax was paid. Sec. 6511(b)(2) provides limitations on the
amount of any credit or refund as follows:
(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. If the tax was required to be paid by means of
a stamp, the amount of the credit or refund shall not
exceed the portion of the tax paid within the 3 years
(continued...)
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6512(b)(3)(B); Commissioner v. Lundy, 516 U.S. 235, 243-244
(1996); Stevens v. Commissioner, T.C. Memo. 1996-250.
The only tax payments petitioner made for 1994 were
withholding credits. Such payments are deemed to have been paid
as of April 15, 1995. See sec. 6513(b)(1).3 Since the
withholding taxes were paid more than 2 years before the notice
of deficiency was mailed, petitioner is not entitled to a refund
of any part of an overpayment for 1994. We therefore hold that
the statutorily imposed time limitations of sections 6511 and
6512 bar us from determining that petitioner is entitled to a
refund with respect to his 1994 tax. See Commissioner v. Lundy,
2
(...continued)
immediately preceding the filing of the claim.
(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.
(C) Limit if no claim filed.--If no claim was
filed, the credit or refund shall not exceed the amount
which would be allowable under subparagraph (A) or (B),
as the case may be, if claim was filed on the date the
credit or refund is allowed.
3
Sec. 6513(b)(1) provides in pertinent part:
(1) Any tax actually deducted and withheld at the
source during any calendar year * * * shall * * * be
deemed to have been paid by him on the 15th day of the
fourth month following the close of his taxable year
with respect to which such tax is allowable as a credit
under section 31.
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supra; Badger v. Commissioner, T.C. Memo. 1996-314; Stevens v.
Commissioner, supra.
To reflect the foregoing,
Decision will be entered
for petitioner as to the
deficiency and addition to
tax and for respondent as to
the overpayment.