Elgin E. Flagg - Page 8

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               We apply the established law on the refund of overpayments             
          to the stipulated amounts shown in the chart above.  Each of the            
          withheld amounts was deemed withheld and paid on April 15 of the            
          year in which the return was due, and the fact that petitioner              
          received an extension of time to file some of the returns did not           
          change the date as of which the tax is deemed paid.  Sec. 6513(a)           
          and (b)(1).  Respondent issued the notices of deficiency to                 
          petitioner on May 11, 1995, and, as of that date, petitioner had            
          not yet filed his returns.  Thus, apart from the effect of                  
          section 6511(d), petitioner is generally limited to a refund of             
          only amounts that he paid during the 2-year period prior to                 
          May 11, 1995.  Commissioner v. Lundy, 516 U.S. at    , 116 S. Ct.           
          at 647.  Respondent has conceded that section 6511(d)(1) entitles           
          petitioner to a refund of the overpayments for each subject year,           
          except 1986, to the extent that the overpayments are attributable           
          to worthless debts or worthless securities.  Accordingly,                   
          petitioner is entitled to a refund of those amounts.  With                  
          respect to the 1986 overpayment, however, respondent has not made           
          a similar concession because all of the underlying amounts were             
          paid more than 7 years before the notice of deficiency was                  
          issued.  We hold that petitioner is not entitled to a refund of             
          this amount.                                                                









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