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the exclusive means by which respondent could recover tentative
refunds issued in error. We cited the committee report
accompanying the predecessor to section 6411, which stated that
in recovering erroneous tentative refunds, “the Commissioner will
usually proceed by way of a deficiency notice in the ordinary
manner, and the taxpayer may litigate any disputed issues before
the Tax Court.” Id. at 771 (citing H. Rept. 849, 79th Cong., 1st
Sess. (1945), 1945 C.B. at 583).
In Collegiate Cap & Gown v. Commissioner, 59 T.C. 449, 455
(1972), we found that the purposes of section 6411 are better
served when the remedies available to the Commissioner to recover
tentative refunds issued in error are construed broadly. We
observed that if the Commissioner were unable to use the
deficiency procedure to recover refunds issued pursuant to
section 6411, there would be a “real danger that he would feel
compelled to act more cautiously in allowing tentative carryback
adjustments.” Id. When an application is denied, the taxpayer’s
only recourse is to file the more time-consuming ordinary claim
for refund, denying a financially troubled taxpayer the quick
infusion of cash contemplated by section 6411.
The foregoing cases confirm our conclusion that respondent
properly resorted to the deficiency procedures in the case at
hand. We shall not allow petitioner to penalize respondent by
erecting a bar against the determination of a deficiency; we
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