Estate of Stella Adler Wilson - Page 7

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          $1,800, $236, and $30,561 to the taxable years 1978, 1984, and              
          1989, respectively, were improper; and (3) petitioner is                    
          therefore entitled to add the reallocations back to the taxable             
          year 1980.  Thus, petitioner contends that, since she made a                
          $30,000 voluntary tax payment on March 9, 1998, which was                   
          "designated to the taxable year 1980" and the 2 subsequent years,           
          there was no deficiency for the 1980 taxable year, thereby                  
          resulting in a $30,000 overpayment.                                         
               Respondent argues that the IRS's reallocations were proper             
          because decedent did not designate her voluntary payment in a               
          manner that supersedes the IRS's discretionary authority to                 
          reallocate voluntary taxpayer remittances.  According to                    
          respondent, the IRS has discretion to reallocate voluntary                  
          taxpayer remittances so long as the remittance is not designated            
          a deposit in the nature of a cash bond (deposit).  In the absence           
          of evidence of such a designation, the IRS deems the remittance a           
          payment of tax and may therefore reallocate the payment of tax to           
          any taxable years in which assessments are outstanding.  If                 
          respondent's reallocations are proper, then respondent asserts              
          that petitioner has an underpayment of $2,597 for the taxable               
          year 1980, determined as follows (additions to tax under sections           
          6653(a) and 6659 were conceded by respondent):                              

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