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tax for 1986 and its effect on the transcript for 1986. There is
no merit to petitioner's contentions, as the deficiency for 1986
was an amount over and above the tax shown on the return and
properly accounted for on respondent's transcripts of account.
Petitioners next dispute with respondent over the correct
amount of overpayment for 1988 is in regard to the frivolous
return penalties assessed and paid out of the 1988 account.
Petitioner contends that in 1991 the Hansens ostensibly
resubmitted their 1988 and 1989 returns by filing with respondent
a statement purging the jurat deletions and affirming that the
said returns were true and correct under penalties of perjury.
Therefore, petitioner seeks a refund of the $1,000.
First of all, section 6402 gives respondent the authority to
credit the amount of an overpayment, including any interest
allowed thereon, against any liability with respect to Internal
Revenue tax on the part of the person who made the overpayment.
Accordingly, the $1,000 payment of the frivolous return penalties
from the 1988 account was authorized. Moreover, the $1,000 has
been restored to that account.
Secondly, we only have jurisdiction in this case to decide
petitioner's income tax liability for 1988. The frivolous return
penalty is not an income tax, notwithstanding that it resulted
from the filing of purported income tax returns. Section
6703(c)(2) provides that a taxpayer, after following certain
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