T.C. Memo. 2000-113
UNITED STATES TAX COURT
BOBBY B. SMATHERS AND KATHLEEN N. SMATHERS, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 5425-98. Filed March 30, 2000.
Bobby B. Smathers and Kathleen N. Smathers, pro sese.
David Delduco, for respondent.
MEMORANDUM OPINION
THORNTON, Judge: By separate notices of deficiency dated
December 18, 1997, respondent determined deficiencies in and
additions to tax relating to petitioner husband’s 1991, 1993,
1994, 1995, and 1996 Federal income taxes, and petitioner wife’s
1993, 1994, 1995, and 1996 Federal income taxes.
- 2 -
After concessions,1 the only issues for decision are:
(1) Whether we have authority under section 6512(b) to award
a refund of petitioners’ $2,045 overpayment for taxable year
1994. We hold that we do not.
(2) Whether petitioners are entitled to a carryover credit
from taxable year 1990 to taxable year 1991 in excess of the
$152 that respondent has allowed. We hold that they are not.
Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable years in
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
The parties have stipulated some of the facts, which are
incorporated by this reference. When they filed their petition,
petitioners resided in Buford, Georgia.
Respondent received petitioners’ 1990, 1991, and 1992 joint
Federal income tax returns on or about September 29, 1993, April
6, 1995, and June 11, 1996, respectively.2 In addition,
1
Respondent concedes that petitioners have made
overpayments for taxable years 1991, 1994, and 1995 in the
amounts of $611, $2,045, and $26, respectively, and that
petitioners are entitled to refunds of their 1991 and 1995
overpayments, subject to offset for other amounts that might be
due to the United States. Petitioners concede that they owe
deficiencies of $778 and $674 for taxable years 1993 and 1996,
respectively. Respondent also concedes the additions to tax
under secs. 6651(a)(1) and 6654 for both petitioners.
2
Petitioners filed a Form 4868, Application for Automatic
Extension of Time to File U.S. Individual Income Tax Return for
(continued...)
- 3 -
according to respondent’s records, petitioners did not file their
joint returns for taxable years 1993, 1994, 1995, and 1996 until
they presented them to respondent’s Appeals Office on
January 14, 1999.
1. Authority To Award a Refund of Petitioners’ 1994 Overpayment
As a result of excess Federal income tax withholdings,
petitioners overpaid their 1994 Federal income taxes by $2,045.
Respondent argues that we lack authority to award a refund.
Generally, this Court has jurisdiction to award a refund for
overpayment of taxes that the taxpayer paid within one of two
applicable look-back periods: either (1) the 2 years before
respondent issued the notice of deficiency, or (2) the 3 years
before the taxpayer filed his or her return. See secs.
6511(b)(2)(A) and (B), 6512(b)(3)(B); Commissioner v. Lundy, 516
U.S. 235, 241-242 (1996). If the taxpayer does not file a return
before the notice of deficiency is issued, the 2-year look-back
period applies. See secs. 6511(b)(2)(B), 6512(b)(3);
Commissioner v. Lundy, supra at 243.
Petitioners assert that they filed their 1994 joint Federal
income tax return on April 6, 1995, before the issuance of the
notices of deficiency on December 18, 1997. Respondent, however,
2
(...continued)
1992, on April 14, 1993. When respondent received petitioners’
1992 joint Federal income tax return, it was untimely.
- 4 -
has no record of receiving petitioners’ 1994 return before
January 14, 1999.
Petitioners presented no documentation, such as a registered
or certified mail receipt, as to the filing of their 1994 return.
Petitioner husband’s testimony about mailing petitioners’ 1994
joint return was vague, as he was unable to recall even whether
he mailed it from North Carolina or Georgia. Moreover, the
record shows that petitioners are chronic late filers of their
Federal income tax returns, which weighs against their
credibility in this regard. We conclude and hold that
petitioners have failed to prove that they mailed their 1994
joint Federal income tax return before the notices of deficiency
were issued.
Consequently, the 2-year look-back period of section 6511
applies, and petitioners are entitled to a refund only of taxes
paid within the 2 years immediately prior to the date the notices
of deficiency were mailed. See secs. 6511(a) and (b)(2)(B);
Commissioner v. Lundy, supra at 243.
Petitioners’ 1994 Federal tax withholdings are deemed paid
on April 15, 1995, see secs. 6513(a) and (b)(1), more than 2
years before December 18, 1997, when respondent issued the
notices of deficiency. Thus, we lack authority to award
petitioners a refund of their 1994 overpayment. See id.
- 5 -
2. Carryover Credit From Taxable Year 1990 to Taxable Year 1991
On their late-filed 1990 Federal income tax return,
petitioners showed a $7,631 overpayment, which they requested be
applied to their 1991 estimated tax. Consistent with this
position, on their late-filed 1991 Federal income tax return,
petitioners claimed $7,631 as “1991 estimated tax payments and
amount applied from 1990 return”.
Respondent’s certificate of assessments and payments for
petitioners’ 1990 taxable year, by contrast, shows that
petitioners overpaid their 1990 joint Federal income taxes by
only $1,028, $876 of which respondent transferred to cover
petitioners’ unpaid 1989 Federal income tax liabilities,
additions to tax, and interest. Respondent transferred a
carryover credit of the remaining overpayment of $152 from
taxable year 1990 to petitioners’ 1991 accounts. Respondent
contends that petitioners are entitled to no additional carryover
credit from 1990 to 1991.
The difference between the $7,631 overpayment claimed by
petitioners on their 1990 return and the $1,028 overpayment
reflected in respondent’s records is attributable to $6,603
claimed on petitioners’ 1990 joint Federal income tax return as
“1990 estimated tax payments and amount applied from 1989
- 6 -
return”. Respondent’s records do not reflect any amount of 1990
estimated tax payments; nor do they reflect any carryover credit
from 1989 to 1990. To the contrary, as previously discussed,
respondent carried back a portion of petitioners’ 1990
overpayment to satisfy petitioners’ unpaid 1989 Federal tax
liabilities.
Petitioners have failed to establish that they are entitled
to a carryover credit from 1990 to 1991 in excess of $152. See
Rule 142(a). In particular, there is no evidence in the record
that petitioners actually made 1990 estimated tax payments or had
any amount available as a carryover from taxable year 1989, to
give rise to the claimed carryover from taxable year 1990. As
evidence, petitioners offered only petitioner husband’s very
general and uncorroborated testimony, which we find inadequate to
substantiate their claims. Cf. Geiger v. Commissioner, 440 F.2d
688, 689-690 (9th Cir. 1971), affg. per curiam T.C. Memo.
1969-159; Barber v. Commissioner, T.C. Memo. 1999-260.
Accordingly, we sustain respondent’s determination on this issue.
To reflect the foregoing and concessions by the parties,
Decision will be entered
under Rule 155.
- 7 -