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Section 6211(b)(2) defines a "rebate" as an abatement,
credit, refund, or other repayment made on the ground that the
tax imposed was less than the amount shown on the return and the
amounts previously assessed or collected without assessment. See
also Groetzinger v. Commissioner, 69 T.C. 309, 314 (1977).
Accordingly, not all refunds are rebates. See O'Bryant v. United
States, 49 F.3d 340 (7th Cir. 1995); Groetzinger v. Commissioner,
supra at 312. Generally, a rebate refund is issued on the basis
of a substantive recalculation of the tax owed. See O'Bryant v.
United States, supra at 342. A nonrebate refund, however, is
issued, not because of a determination by the Commissioner that
the tax paid is not owing, but for some other reason, such as a
mistake made by the Commissioner. Id. The rebate versus
nonrebate distinction arises from the definition of the term
"deficiency" contained in section 6211; rebate refunds can be
included in deficiency computations, while nonrebate refunds
cannot. Id.
Petitioner contends that, because the tentative refunds were
delivered to the wrong taxpayer, those tentative refund
allowances constitute, for purposes of determining whether the
group has deficiencies for 1981 and 1984, nonrebate refunds with
respect to petitioner and the group. Petitioner contends that
6(...continued)
See Midland Mortgage Co. v. Commissioner, 73 T.C. 902, 907
(1980); Kurtzon v. Commissioner, 17 T.C. 1542, 1548 (1952).
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