Edward Turney Savage - Page 6




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          determining a deficiency for the taxable year in respect of which           
          the overpayment was originally claimed and allowed.  Terry v.               
          Commissioner, 91 T.C. 85, 87 (1988).                                        
               Section 6512(b) defines this Court's jurisdiction to                   
          determine overpayments.  Paragraph (4) of such section serves to            
          deny jurisdiction to the Court "to restrain or review any credit            
          or reduction made by the Secretary under section 6402."  Sec.               
          6512(b)(4).2                                                                
               Pursuant to the authority conferred by section 6402(a),                
          respondent credited the $10,131 overpayment claimed by petitioner           
          on his 1993 return against his assessed tax liabilities,                    
          including interest and penalties, for 1990 and 1991.  Petitioner            
          contends that his liabilities for interest and penalties for 1990           
          and 1991 were improperly determined by respondent.  However,                
          section 6512(b)(4) clearly restricts our jurisdiction to decide             
          that matter.                                                                
               Our holding in this case is supported by an opinion of the             
          Court of Appeals for the Second Circuit, the circuit to which               
          this case is appealable, that predates the enactment of section             
          6512(b)(4).  See Belloff v. Commissioner, 996 F.2d 607 (2d Cir.             


          2  Sec. 6512(b)(4) was added to the Code by the Taxpayer                    
          Relief Act of 1997 (TRA 1997), Pub. L. 105-34, sec. 1451(b), 111            
          Stat. 788, 1054.  Sec. 6512(b)(4) became effective on Aug. 5,               
          1997, see TRA 1997, sec. 1451(c), 111 Stat. 1054, and is                    
          therefore applicable in this case.                                          




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