- 10 - in his reply brief, Ertman was decided by the U.S. Court of Appeals for the Second Circuit, the court to which this case would normally be appealed, after opening briefs were filed in this case.) In Ertman, the Court of Appeals held that remittances submitted with Forms 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, constituted payments, not deposits, and therefore the taxpayers' entitlement to refunds was limited by section 6511. See id. Respondent goes on to point out that his own revenue procedure, Rev. Proc. 84-58, supra section 4.03, 1984-2 C.B. at 502-503, explicitly says that any payment which is "specifically designated as a deposit in the nature of a cash bond will be treated as a payment of tax if it is made in response to a proposed liability * * * and remittance in full of the proposed liability is made." (Emphasis added.) Respondent nevertheless argues that because decedent's remittance was "undesignated", the IRS was authorized to reallocate it. Where a taxpayer makes an involuntary payment, the IRS may allocate or reallocate the payment as it sees fit, regardless of taxpayer designation, if any. As we stated in Amos v. Commissioner, 47 T.C. 65, 69 (1966): "An involuntary payment of Federal taxes means a payment received by agents of the United States as a result of distraint or levy or from a legalPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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