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petitioner is by the institution of suit against him under the
provisions of section 7405(b). To this end, petitioner contends
that the period of limitations on a suit for an erroneous refund
has expired. Sec. 6532(b). Respondent argues that she is not
limited to a suit under section 7405, that the deficiency
procedures are applicable, and that respondent's statutory notice
was timely issued.
Section 6532(b) provides as follows:
SEC. 6532(b). Suits by United States for Recovery of
Erroneous Refunds.--Recovery of an erroneous refund by suit
under section 7405 shall be allowed only if such suit is
begun within 2 years after the making of such refund, except
that such suit may be brought at any time within 5 years
from the making of the refund if it appears that any part
of the refund was induced by fraud or misrepresentation of a
material fact.
Section 7405(b) provides as follows:
SEC. 7405(b). Refunds Otherwise Erroneous.--Any portion
of a tax imposed by this title which has been erroneously
refunded (if such refund would not be considered as
erroneous under section 6514) may be recovered by civil
action brought in the name of the United States.
A suit for the recovery of an erroneous refund under section
7405 is merely one of several remedies open to the Government in
such a situation. Krieger v. Commissioner, 64 T.C. 214, 216
(1975). It is a civil action brought in the name of the United
States, and does not preclude a wholly different alternative
remedy, namely; the determination of a deficiency by the
Commissioner. Id. It has been firmly established in our tax law
that the Commissioner may proceed through the deficiency route
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