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generated in 1990 could only be applied to petitioner’s 1991
estimated tax payments, which is the tax year immediately
succeeding the taxable year in which the 1990 return was filed.
See Stephenson v. Commissioner, T.C. Memo. 1995-33; Stephenson v.
Commissioner, T.C. Memo. 1995-32. When respondent could not
apply the remaining 1987 overpayment to petitioner’s 1990
estimated tax liability, respondent correctly issued petitioner
the refund checks. Accordingly, we sustain respondent on this
issue.
Additions to Tax for Failure To Timely Pay
We review respondent’s determination de novo and sustain
respondent on this determination.12 If a Federal income tax is
not timely paid, “there shall be added to the amount shown as tax
on such return 0.5 percent of the amount of such tax” for each
month or fraction thereof, but “not exceeding 25 percent” “unless
it is shown that such failure is due to reasonable cause and not
due to willful neglect”. Sec. 6651(a)(2). Petitioner argues
that the additions to tax should not be imposed because, if
respondent had applied the overpayments to petitioner’s 1990
estimated tax payments as he requested, the Federal income taxes
due would have been paid. But the fact remains that petitioner
did not timely file his returns, and he has conceded his
12 Respondent has satisfied his burden of production under
sec. 7491(c).
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