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income tax for its succeeding taxable year, such amount shall be
applied as a payment on account of its estimated tax for such
year. Based upon these provisions, petitioner contends that
respondent was obliged to accept its amended returns for 1990 and
1991 and to recognize petitioner's election to treat the
overpayment claimed on its amended return for 1991 as a credit to
be applied as an estimated tax payment for 1993.
We agree with petitioner that the sections it cites
generally permit a corporate taxpayer to claim a refund by filing
an amended return claiming an overpayment and then to make an
election to treat such overpayment as a credit to be applied
against its estimated tax liability for a succeeding taxable
year. However, we are not persuaded that respondent was
compelled, as a matter of law, to accept petitioner's amended
returns for 1990 and 1991 under the circumstances presented.
Simply stated, petitioner's position is inconsistent with the
proposition that its amended returns constitute "claims" for
refunds that respondent may review and adjust, either by way of
an immediate rejection of the refund claim, see McCabe v.
Commissioner, T.C. Memo. 1983-325, and cases discussed therein,
or by way of a tentative allowance, subsequent audit, and (if
necessary) issuance of a notice of deficiency, see Terry v.
Commissioner, 91 T.C. 85, 87 (1988); Owens v. Commissioner, 50
T.C. 577, 583 (1968), and cases cited therein.
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