Connie A. Washington - Page 37

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          paid is somewhat mitigated in that a refund available under section         
          6015(g)(1) may be limited by section 6511, 6512(b), 7121, or 7122.          
               b.   Limitations of Section 6511                                       
               Respondent argues that should this Court follow the holding in         
          Flores v. United States, supra, then petitioner’s refund for                
          amounts paid on the unpaid 1989 tax liability would be limited by           
          sections 6015(g)(1) and 6511.                                               
               Section 6015(g)(1) provides, in pertinent part, that                   
          “notwithstanding any other law or rule of law (other than section           
          6511, 6512(b), 7121, or 7122), credit or refund shall be allowed or         
          made to the extent attributable to the application of this                  
          section”.  Since we have held that section 6015 applies to the              
          entire liability and that petitioner is entitled to relief with             
          respect to the entire liability, the only limitations on the refund         
          are those set forth in sections 6511, 6512(b), 7121, and 7122.  The         
          only limitation applicable in this case is section 6511.14  As              
          relevant to this case, section 6511 requires that a claim for               
          credit or refund of an overpayment of any tax in respect of which           
          the taxpayer is required to file a return must be filed within 3            
          years from the time the return was filed or 2 years from the time           
          the tax was paid, whichever of such periods expires later.                  


               14   Sec. 6512(b) limits the amount of a refund in a                   
          deficiency proceeding.  Sec. 7121 applies to cases involving                
          closing agreements, and sec. 7122 applies to cases involving                
          compromises.                                                                




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