William D. Colburn - Page 11

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               Petitioner in his brief cites cases dealing with the time              
          the Government has for collection of a tax after its assessment.            
          Petitioner concludes from these cases that "there has to be a               
          collection of tax either by seizure of petitioner's property or             
          the sum taken from his refund when issued."  It is clear that the           
          cases cited by petitioner are cases in which prior payment of the           
          tax had not been made.  Apparently petitioner is claiming that              
          the handling by the Government in the computation of his                    
          overpayment of income tax was effectively a setoff of one tax               
          against another.  As is clear from the facts here stipulated, the           
          refund to petitioner results from the determination of the amount           
          of overpayment of income tax due to petitioner for the taxable              
          year 1966.  Section 6659 (as in effect for 1977) provided that              
          additions to tax shall be paid upon notice or demand and shall be           
          assessed, collected, and paid in the same manner as taxes, and              
          that any reference to "tax" imposed by this title shall be deemed           
          also to refer to additions to tax.  There are cases involving               
          various factual situations that indicate that where a deficiency            
          for 1 year has been offset against a refund due for another year,           
          or a different tax, such as a gift or estate tax, is offset                 
          against an overpayment of income tax, the payment date of the               
          offset tax may be considered to be the date of the offset.  We              
          are not faced with that situation, since here what respondent did           
          was not technically an offset, but merely the computation of the            
          amount of overpayment of income tax due petitioner for the year             




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