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tax payments and credits are deemed made on the last day for
filing the return, April 15, 1983. Secs. 6513(a) and (b), and
6151. Thus, April 15, 1983, was the deemed date of petitioners’
overpayment.
Under section 6611(b)(2), interest on an overpayment accrues
from the date of the overpayment. Consistent with section
6611(b)(2), respondent accrued interest from April 15, 1983, the
date of petitioners’ claimed 1982 overpayment.
As a result of the foregoing, we conclude that petitioners
are deemed to have had the use of their 1982 refund beginning
April 15, 1983. The 1982 refund amounted to $14,851.79,
consisting of $14,549 plus $302.79 interest. The parties settled
their deficiency proceedings in this Court by agreeing to a
deficiency of $4,298.
As we have noted, section 6601(a) provides the general rule
that interest on an underpayment accrues from the last date
prescribed for payment, which in the instant case was April 15,
1983. Petitioners raise the same use-of-the-money contention
24(...continued)
(b) Date of overpayment. Except as provided in section
6401(a), relating to assessment and collection after the
expiration of the applicable period of limitation, there can
be no overpayment of tax until the entire tax liability has
been satisfied. Therefore, the dates of overpayment of any
tax are the date of payment of the first amount which (when
added to previous payments) is in excess of the tax
liability (including any interest, addition to tax, or
additional amount) and the dates of payment of all amounts
subsequently paid with respect to such liability. * * *
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