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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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