William D. Colburn - Page 12

                                         12-  -                                        
          1966.  In Kingston Prods. Corp. v. United States, 177 Ct. Cl.               
          471, 368 F.2d 281, 286, 287 (1966), there is a lengthy discussion           
          of the difference in an "offset" which involves a different                 
          year's tax or a different tax and a computation of tax for a                
          single taxable year.  The court there pointed out that where a              
          single tax for a single tax year is involved, certain adjustments           
          will result in an increase in tax and other adjustments a                   
          decrease, with the net effect of all the adjustments resulting in           
          either an overpayment or a deficiency, as the case may be.  In              
          that case, it was concluded that the principle of "offset" being            
          date of payment had no application, since the facts in that case            
          showed no offset of a deficiency against an overassessment, but             
          the offsetting of an upward adjustment against a downward                   
          adjustment to a single tax for a single tax year.  The court                
          concluded that if such action could be designated as "offset",              
          that type of "offset" would clearly not constitute a credit or              
          payment within the meaning of the relevant statutes.  See                   
          sections 6402(a), 6407.  Cases dealing with collection on which             
          petitioner relies are factually distinguishable from the present            
          case because here petitioner paid the tax in full before it was             
          assessed.                                                                   
               We, therefore, conclude that since payment of the additions            
          to tax had been made at the time that these additions to tax were           
          timely assessed on December 12, 1977, there was no amount to be             
          collected when the Government computed an overpayment due to                




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