Laura A. Loveland Espinosa - Page 22




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          time the transfer was made, Mr. Espinosa had paid no taxes,                 
          beyond withholding, for the years 1980 through 1985.  Yet even              
          his own subsequently filed returns indicate that he owed taxes              
          for some of these years, and the parties stipulated that “The               
          Internal Revenue Service was a creditor of Frederick Espinosa at            
          the time of the transfer of the Lidak stock.”                               
               Moreover, no evidence shows that the taxes so reflected as             
          due have been paid.  To the extent that statements made by                  
          petitioner on brief can be read to argue that the source of the             
          claimed $80,967 overpayment for 1980 was unrelated to the $93,000           
          to $94,000 in payments made to the IRS in 1991, and that these              
          payments are therefore sufficient to eliminate any remaining                
          liabilities, we find such a position to be insupportable on this            
          record.                                                                     
               Respondent’s transcript of account for Mr. Espinosa’s 1980             
          taxable year records all activity with respect to the account               
          dating from the 1988 preparation by the IRS of a substitute                 
          return for Mr. Espinosa as a nonfiler.  However, until the                  
          subsequent payments of $93,000 to $94,000 commencing in 1991, the           
          only credit reflected therein is a $38,265 credit for withheld              
          taxes and excess FICA.  The transcript shows neither credit for             
          an overpayment from a prior year nor remittance of any additional           
          sums to the IRS beyond the $93,000 to $94,000.  Hence, since                
          these payments are the only ones made by Mr. Espinosa and applied           






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