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by the amount of any credit against the tax which may
be claimed on the return,
(2) subsection (a)(2), the amount of tax shown on
the return shall, for purposes of computing the addi-
tion for any month, be reduced by the amount of any
part of the tax which is paid on or before the begin-
ning of such month and by the amount of any credit
against the tax which may be claimed on the return,
* * *
As applied here, for purposes of section 6651(a)(1), the
amount of petitioner’s tax for 1996 required to be shown in his
1996 return is to be reduced by the amount of any part of his tax
for 1996 which is paid on or before the date prescribed for the
payment of such tax (i.e., on or before April 15, 1997) and by
the amount of any credit against his 1996 tax to which he is
entitled and which may be claimed in his return for that year.
In the instant case, petitioner has conceded in the parties’
stipulation of facts (stipulations) that none of the $61,151
overpayment for 1995 may constitute a payment or a credit against
petitioner’s underpayment of $40,882.69 for 1996.4 The only tax
4The pertinent stipulations of the parties are:
8. The petitioner did not file his 1995 Form 1040
until March 13, 2000. In that return, petitioner
claimed an overpayment in the amount of $61,151.00,
which he elected to apply as a credit to his 1996 tax
year. The parties stipulate that petitioner is barred
by the statute of limitations from applying that over-
payment to the taxable year 1996.
9. The parties stipulate that the petitioner has
underpaid his Federal income tax for the taxable year
1996 in the amount of $40,882.69.
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