- 5 -
for 1991 and carried forward to 1992, and the $7,729,449
overpayment claimed on petitioner's income tax return for 1992.
Petitioner made an election to treat the $7,818,990 overpayment
claimed on its income tax return for 1993 as a credit to be
applied as an estimated tax payment for 1994 pursuant to section
301.6402-3(a)(5), Proced. & Admin. Regs.5
Upon the filing of petitioner's income tax return for 1993,
respondent made an assessment against petitioner in the amount of
$75,758,778 based upon the amount of total tax reported on such
return by petitioner. Sec. 6201(a)(1). However, respondent did
not recognize the full amount of the tax credits claimed on
petitioner's income tax return for 1993. In particular, because
the taxable years 1990 and 1991 were the subject of an
outstanding notice of deficiency, respondent did not accept
petitioner's amended returns for 1990 and 1991, nor did
respondent recognize petitioner's election to treat the
overpayments claimed on such amended returns as credits to be
applied as estimated tax payments for succeeding taxable years.
In sum, respondent did not recognize the portion of the credit
for estimated tax payments claimed on petitioner's income tax
return for 1993 attributable to the $12,621,181 overpayment
5 Petitioner also reported overpayments on its income tax
returns for 1994 and 1995. In each instance, petitioner made an
election to treat such overpayment as a credit to be carried
forward and applied as an estimated tax payment for the
succeeding taxable year.
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