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Respondent determined a deficiency in petitioners' Federal
income tax for the taxable year 1992 in the amount of $315.
Petitioners resided in Hinckley, Ohio, at the time they filed
their petition.
The issue is whether petitioners are entitled to offset
against a deficiency in income tax an overpayment that was
previously applied to a different liability.
FINDINGS OF FACT
The facts are not disputed and may be summarized as follows.
Petitioners filed a 1992 joint Federal income tax return
indicating that they were entitled to a refund in the amount of
$475 (the $475 overpayment). Respondent applied the $475
overpayment against an outstanding liability determined under
section 6672 pursuant to the authority granted in section
6402(a).2 Subsequently, respondent determined a deficiency in
petitioners' 1992 Federal income tax in the amount of $315. The
parties agree that petitioners are entitled to a credit of $150
for income tax withheld to be offset against the deficiency.
Petitioners do not otherwise dispute the deficiency
determination. Thus, disregarding the propriety of the treatment
of the $475 overpayment, the parties agree that petitioners
2 As relevant here, sec. 6402(a) provides: "In the case of
any overpayment, the Secretary * * * may credit the amount of
such overpayment * * * against any liability in respect of an
internal revenue tax on the part of the person who made the
overpayment and shall * * * refund any balance to such person."
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