123 T.C. No. 2
UNITED STATES TAX COURT
ESTATE OF ALGERINE ALLEN SMITH, DECEASED, JAMES ALLEN SMITH,
EXECUTOR, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 19200-94. Filed July 13, 2004.
On Jan. 24, 2002, the Court entered a decision
that there was an overpayment of $238,847.24 regarding
E’s estate tax liability, which amount was paid after
the mailing of the notice of deficiency. That decision
is now final. R issued refunds to E which were less
than the overpayment amount and interest thereon. R
alleges that the refund was less than the $238,847.24
overpayment and interest thereon because, after our
decision became final, and pursuant to sec. 6402(a),
I.R.C., he applied $85,336.83 of the $238,847.24
overpayment to assessed but unpaid interest that had
accrued on E’s estate tax deficiency prior to the date
of payment (underpayment interest). E filed a motion
to enforce our overpayment determination pursuant to
sec. 6512(b)(2), I.R.C., and Rule 260, Tax Court Rules
of Practice and Procedure.
Held: An overpayment means any payment of tax in
excess of the tax which is properly due. For purposes
of determining the amount of an overpayment, the term
“tax” includes any underpayment interest due thereon.
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