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the abatement determination, there is no blinking the fact that
the $54,372.61 plus interest that was a portion of the
$128,715.36 refund was available to be paid to Nancy in 1988
solely because of the credit for 1981 that had been generated by
the State Coal royalty deduction.
On answering brief, petitioners contend as follows:
Respondent's own witness testified that the amount
"transferred back" to 1980 consisted of withholding credits
and occurred April 15, 1982, a date which is prior to the
filing of the Silverman's 1981 tax return, a date which is
prior to the Internal Revenue Service receiving the tax
return which contained the grossly erroneous item.
Therefore, the prior "transfer back" of Sheldon Silverman's
withholding credits had nothing whatsoever to do with the
filing of the 1981 tax return and had nothing to do with the
grossly erroneous State Coal Venture deduction claimed on
the 1981 tax return. The "transfer back" of Sheldon
Silverman's withholding credits was not contingent upon, nor
did it result from the State Coal Venture deduction, as this
"transfer back" occurred prior to the reporting of this
grossly erroneous item. [Emphasis in original.]
The transcripts of account for Nancy's and Sheldon's 1981
and 1980 income tax liabilities show that the $54,372.61 transfer
occurred, or was posted, as of April 15, 1982. It is clear, and
we have found, that after the transfer the balance in Sheldon's
and Nancy's 1980 account was zero. Examination of the
adjustments shown on the transcript of account for 1980 and
listed on supra table 6, shows that a $54,372.61 transfer into
the 1980 account would make the balance zero only after giving
effect to the September 27, 1982, adjustments. Thus, although
the transfer was made as of April 15, 1982, it was made on or
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