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District Counsel, IRS, for 4-1/2 years and then left to enter
private practice. He earned an LL.M. (tax) degree from New York
University in 1983.
In 1986, Newman was a practitioner working solely on Federal
income tax and related matters. In that year he wrote letters to
all of his clients who had pending tax matters, including
decedent, advising them that, due to changes in the law, if they
wished to deduct interest on tax liabilities, either "determined"
or contested, they had until December 31, 1986, to pay both the
tax and the interest thereon in full. Decedent apparently was
motivated by this letter to make her $185,327 payment on December
31, 1986, although in a recently filed status report Newman
states that he never heard from decedent in response to his
letter.
Discussion
Petitioner argues that decedent made a voluntary payment of
tax on December 31, 1986, in the amount of $89,410, the exact
amount of the deficiency for 1980, which, petitioner claims, was
"designated to the taxable year 1980". She urges that the
$89,410 was part of a total remittance of $185,327, the balance
of which, it is agreed, the IRS treated as a designated payment
of interest. Petitioner further argues that (1) since decedent's
voluntary payment was so designated, respondent was bound to
honor her designation; (2) respondent's 1992 reallocations of
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