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Commissioner, T.C. Memo. 1997-69; Cox v. Commissioner, supra. In
Ripley, a bankruptcy case, the Court of Appeals for the Fifth
Circuit held that, in view of the provisions of the Code
discussed above, a payment of estimated tax is not the equivalent
of a payment of income tax, and that the income tax is due and
payable on the due date of the return, irrespective of whether
the taxpayer made payments of estimated tax for the year. This
Court held, in the Kurt Orban Co. and Cox cases, respectively,
that the effective date of section 6653(a)(2) did not preclude
its application to underpayments of withholding tax for 1981
required by section 1442, or a 1981 deficiency resulting from the
taxpayers' negligent failure to report income received during
1981.
Petitioners mistakenly rely on two revenue rulings that are
inapposite to the issue before us: Rev. Rul. 79-69, 1979-1 C.B.
134; and Rev. Rul. 71-190, 1971-1 C.B. 70. These rulings concern
the effect of estimated taxes on the earnings and profits of a
corporation, and the deductibility of estimated payments of State
income taxes, respectively.5 We consider them distinguishable
and unpersuasive with respect to the issue in the present case,
5 Rev. Rul. 79-69, 1979-1 C.B. 134, provides that mandatory
estimated payments of Federal income taxes should reduce earnings
and profits of a cash-basis corporation in the year of payment.
Rev. Rul. 71-190, 1971-1 C.B. 70, provides that mandatory
estimated payments of State income taxes are deductible for
Federal income tax purposes by a cash-basis corporation in the
year of payment.
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