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underpaid their 1992 Federal income tax by $165. Respondent
contends that this is the end of the matter. Petitioners assert
that they are entitled to offset the $475 overpayment against
this liability and are therefore entitled to a refund in the
amount of $310.
OPINION
At the outset, we note that respondent had the authority to
apply petitioners' overpayment against any outstanding tax
liability they owed, and that such an application does not
preclude respondent from subsequently determining a deficiency
with respect to the taxable year of the overpayment. Sec.
6402(a); Terry v. Commissioner, 91 T.C. 85 (1988); Jarrett v.
Commissioner, T.C. Memo. 1992-181. We do not understand
petitioners to contend otherwise.
As we understand it, petitioners assert that they are
entitled to credit the $475 overpayment against their 1992 tax
deficiency and receive a refund of the excess. However,
petitioners have already received a $475 refund in the form of a
reduction of the outstanding section 6672 liability.
Consequently, the application of the $475 overpayment to
petitioners' 1992 tax deficiency that petitioners seek would
amount to a double refund, to which petitioners are obviously not
entitled. Jarrett v. Commissioner, supra.
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