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respondent’s records were updated. According to Form 4340 for
the 1995 taxable year, the taxpayers’ updated 1995 account
reflected not only the tax payments made on November 23, 1999,
but also the $391.23 credit from the overpayment of taxpayers’
1998 tax. Pursuant to the authority conferred by section
6402(a),2 respondent credited the $391.23 of the overpayment of
the taxpayers’ 1998 tax against their assessed, uncontested, and
unpaid tax liability for 1995. The result was a $15.63
overpayment credit rather than a balance due.
The taxpayers received a notice of deficiency for the 1995
taxable year but did not seek a redetermination of the tax
deficiency, addition to tax, and penalty. Petitioner, therefore,
is not entitled to dispute the existence or amount of the
underlying tax liabilities for 1995 at a CDP hearing. See sec.
6330(c)(2)(B). Since petitioner no longer can challenge the
underlying tax liability for the 1995 taxable year, and the
taxpayers’ liability for the 1995 taxable year is satisfied,
there is no case or controversy for this Court to decide for the
1995 taxable year. Accordingly, respondent’s motion to dismiss
for mootness will be granted.
2 Sec. 6402(a) expressly authorizes the Commissioner to
credit the amount of an overpayment against any tax liability of
the taxpayer.
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Last modified: May 25, 2011