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the refund for the overpayment shown on his 1997 return was
applied to his past-due child support liability.
The Commissioner is authorized to refund to a taxpayer any
overpayment the taxpayer made. Sec. 6402(a). However, where the
taxpayer is liable for past-due support, the Commissioner is
statutorily required to intercept and to remit any overpayments,
to the extent of the liability, to the State collecting the
support. Sec. 6402(c).3 Whether a refund for a given taxable
year is paid directly to a taxpayer or is intercepted for past-
due support, the Commissioner nevertheless may determine that
there is a deficiency in tax for that year. Terry v.
Commissioner, 91 T.C. 85 (1988). If the Commissioner makes such
a determination, the taxpayer is not entitled to an offset of the
refund against the amount of the deficiency. Sec. 6211(a). In
short, because the 1997 refund was remitted on petitioner’s
behalf in accordance with his obligation to pay child support,
petitioner is liable for the subsequently determined deficiency
in the tax shown on the 1997 return.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for respondent.
3This Court does not have jurisdiction to review the
Commissioner’s interception of refunds for past-due child support
under the authority of sec. 6402(c). Sec. 6402(f).
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Last modified: May 25, 2011