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On November 4, 1988, this Court entered stipulated decisions
in docket Nos. 7886-77 and 9957-78 indicating that petitioner had
overpayments in income tax in the amounts of $101,286 and $4,649,
respectively, for 1973 and 1974. In December 1988, respondent
mailed a check to petitioner in the amount of $152,624.35 for the
overpayment in tax plus interest for the 1973 tax year.3 The
record does not indicate whether a check was sent to petitioner
for his 1974 overpayment, nor is there any question before the
Court with respect to the 1974 overpayment. Petitioner neither
endorsed nor negotiated the $152,624.35 check. In a letter dated
December 21, 1988, counsel for petitioner returned the check to
respondent. The letter requested that "the overpayments be
reapplied by the IRS to those years for which deficiencies either
have been proposed or assessed, per the following instructions."
The letter then provided instructions as to how petitioner wanted
the overpayments to be applied among several tax years.
Particularly, the letter directed that $67,078 of the 1973
overpayment be applied to petitioner's 1980 tax year, one of the
years before the Court in this case.
Respondent did not follow petitioner's instructions.
Respondent did not reissue a refund check. Instead, respondent
3 The documentation submitted by the parties differs with
respect to the date the check was issued and whether or not the
check also included the overpayment for 1974. These differences
are not material to the question before the Court.
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