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refund be applied against the unpaid tax liability. After paying
the tentative refund, the Commissioner determined that the
taxpayers did not sustain the NOL and issued a notice of
deficiency for 1985. The taxpayers filed a petition and then
filed a motion to dismiss for lack of jurisdiction because there
was no “deficiency”. The taxpayers argued that a credit
resulting from a tentative carryback adjustment is not a rebate
because it did not result from the return showing more tax than
was imposed. Baldwin v. Commissioner, supra at 708. We rejected
petitioner’s argument and held that the credit was made against
the taxpayer’s 1985 tax liability because the amount of tax
imposed after the NOL was carried back was less than the amount
shown on the return. We therefore concluded that the credit was
a rebate under section 6211(b)(2).
In Neri v. Commissioner, 54 T.C. 767 (1970), the
Commissioner issued tentative refunds on the basis of taxpayers’
applications for tentative carryback adjustments carrying back
NOLs sustained in 1963, 1964, and 1965 to 1959, 1961, and 1962,
respectively. The Commissioner subsequently issued a notice of
deficiency for 1959, 1961, and 1962 because the taxpayers, as
shareholders of an S corporation, were required first to apply
the NOLs to their gross income in each of the taxable years in
which the NOLs were sustained. Id. at 769. We rejected the
taxpayers’ contention that the summary assessment procedures were
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