Loren H. Schwechter - Page 13




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          the May 11, 1995, notice of deficiency was timely because issued            
          within 3 years of October 4, 1993.  In the absence of any other             
          evidence or argument to support petitioner’s allegations of                 
          error, respondent’s deficiency determinations for the years in              
          issue are sustained.                                                        
          2.  Amount of Overpayment                                                   
               The parties have stipulated that $19,209 and $5,295.87 were            
          withheld from petitioner’s wages in 1988 and 1989, respectively.            
          Section 6401(b) provides that refundable credits, such as taxes             
          withheld from wages under section 31, exceeding the income tax              
          imposed for each year shall be considered overpayments of tax.              
          In the instant case, the income tax imposed for 1988 and 1989               
          equals the sum of the deficiency and the amount shown as tax by             
          the petitioner on his return for each year.  See sec. 6211(a) and           
          (b)(1).  For 1988, the deficiency is $9,866 and the amount shown            
          on the return was $2,501; thus, the income tax imposed for 1988             
          is $12,367.  For 1989, the deficiency is $1,612 and the amount              
          shown on the return was $0; thus, the income tax imposed for 1989           
          is $1,612.  Accordingly, petitioner has an overpayment for 1988             
          of $6,842 (a section 31 credit of $19,209 less the tax imposed of           
          $12,367), and an overpayment for 1989 of $3,683.87 (a section 31            
          credit of $5,295.87 less tax imposed of $1,612).                            










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