Arthur Turco - Page 4

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          admitting that they never filed.  Mr. Turco informed Ms. North              
          that he and his wife had filed their 1989, 1990, and 1991 tax               
          returns twice (i.e., once when they were due and again when they            
          delivered the returns to Agent McClaughlin).                                
               On October 13, 1995, each petitioner received a separate               
          statutory notice of deficiency relating to 1989, 1990, and 1991.            
          On January 11, 1996, petitioners each filed a Tax Court petition,           
          requesting refunds of their 1989, 1990, and 1991 overpayments.              
          On May 9, 1997, petitioners filed properly executed Forms 1040,             
          U.S. Individual Income Tax Return, for 1989, 1990, and 1991.                
                                       OPINION                                        
          I.  Whether Petitioners May Recover Their Overpayments                      
               The parties agree that petitioners remitted more money than            
          they owed for 1989, 1990, and 1991.  Petitioners concede that all           
          of the remitted funds were payments, rather than deposits.  The             
          issue, therefore, is whether petitioners may obtain a refund of             
          their overpayments.                                                         
               To obtain a refund of an overpayment, a taxpayer must file a           
          refund claim within the later of 3 years from the date the return           
          was filed or 2 years from the date the tax was paid.  Sec.                  
          6511(a).  If the 3-year period applies, the refund is limited to            
          the tax paid during the 3 years (plus any extension of time for             
          filing the return) immediately preceding the filing of the refund           
          claim (3-year look-back period).  Secs. 6512(b), 6511(b)(2)(A).             
          If the 2-year period applies, the refund is limited to the tax              




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