- 8 - Application of the 1987 Overpayment The crux of petitioner’s argument is that if respondent had applied the 1987 overpayment, generated from the 1989 and 1990 NOL’s, “as an estimated tax payment toward any tax liability due on my 1990 return and later years” as he requested in the July 30, 1992, letter, the tax liabilities for 1991, 1992, and 1996 would have been paid. We review respondent’s determination de novo, as the validity of the underlying tax liability, “i.e., the amount unpaid after application of credits to which petitioner is entitled,” is properly at issue. See Landry v. Commissioner, 116 T.C. 60, 62 (2001). Section 6401(b)(1) provides: “If the amount allowable as credits * * * exceeds the tax imposed * * * the amount of such excess shall be considered an overpayment.” The Commissioner may first credit any overpayment against “any outstanding liability for any tax * * * owed by the taxpayer making the overpayment”. Sec. 301.6402-3(a)(6)(i), Proced. & Admin. Regs. Any remaining overpayment may be applied to the estimated tax but only “for the taxable year immediately succeeding the taxable year for which such return (or amended return) is filed.” Sec. 301.6402- 3(a)(5), Proced. & Admin. Regs. (emphasis added); see also sec. 6402(b). The Commissioner shall refund any balance of the overpayment to the taxpayer. Sec. 6402(a).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011