- 13 -
simply allows the amount of tax decrease from prior years that is
not used up in computing the correct 1992 tax liability under
section 1341(a)(5) to also be "considered" to be an overpayment.
Nothing in section 1341(b)(1) limits the tax computation under
section 1341(a)(5) from independently producing an incremental
amount of the final overpayment.
Credit for State Death Taxes
On its estate tax return, petitioner claimed a credit for
State death taxes that it had paid in the amount of $23,917. In
the notice of deficiency for estate tax, respondent determined
that petitioner was entitled to a "Credit for state death taxes
substantiated" in the amount of $144,089 and allowed this amount
in computing the amount of the deficiency. In effect,
respondent's notice of deficiency reflected a determination that
petitioner had fully substantiated a right to the credit. The
$144,089 amount was apparently based upon the total amount of
State death taxes that petitioner would be liable for if
respondent's adjustments were upheld. As part of the Rule 155
(...continued)
(computed without the deduction) such excess shall be
considered to be a payment of tax on the last day
prescribed by law for the payment of tax for the
taxable year, and shall be refunded or credited in the
same manner as if it were an overpayment for such
taxable year.' (Emphasis added.) Thus, the amount of
the overpayment is not the entire amount computed
pursuant to section 1341(a)(5) as petitioner contends,
but only the excess of that amount over petitioner's
income tax liability for 1992 in the amount of
$8,338.00. * * *
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011