- 8 - 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 routePage: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011