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OPINION
We agree with petitioner that he should not have claimed a
$694 overpayment on his 1997 return but rather should have
reported a balance due of $15. However, we decide issues by
judging what actually happened and not by what should have
happened. See Commissioner v. National Alfalfa Dehydrating &
Milling Co., 417 U.S. 134, 148-149 (1974).
The undisputed facts in this case demonstrate that
petitioner claimed a $694 overpayment on his 1997 return and that
respondent credited the overpayment against an outstanding income
tax liability owed by petitioner for 1988.
We reject petitioner’s contention that respondent should not
have credited the 1997 overpayment against the 1988 liability.
Respondent’s action was taken pursuant to statutory authority
conferred by section 6402(a).5 That section provides in
relevant part as follows:
(a)General Rule.--In the case of any overpayment,
the Secretary * * * may credit the amount of such
overpayment * * * against any liability in respect of
any internal revenue tax on the part of the person who
made the overpayment * * * .
At the time that petitioner filed his 1997 return and
claimed an overpayment, he owed tax for 1988. At the time that
respondent credited the claimed overpayment against the
outstanding liability, no contractual or other limitation
5 All section references are to the Internal Revenue Code
in effect for 1997, the taxable year in issue.
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