Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 13

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          that if the Tax Court “finds that the taxpayer has made an                  
          overpayment * * * of estate tax * * * the Tax Court shall have              
          jurisdiction to determine the amount of such overpayment”.                  
          (Emphasis added.)  Section 6512(b) is not part of the deficiency            
          procedures in subchapter B of chapter 63.8  Therefore, the                  
          reference to tax in section 6512(b) must, pursuant to section               
          6601(e), include interest on tax.  As we stated in Barton v.                
          Commissioner, 97 T.C. 548, 552 (1991):                                      
               section 6601(e) states that interest shall be treated                  
               as tax and that any reference in title 26 to the term                  
               “tax” “shall be deemed also to refer to interest.”  The                
               lone exception to this statutory rule relates to                       
               subchapter B of chapter 63 containing both the                         
               definition of “deficiency” and this Court’s                            
               jurisdictional authority to redetermine a “deficiency”.                
               Section 6512, which gives this Court jurisdiction to                   
               determine overpayments, is not within subchapter B of                  
               chapter 63, and the literal terms of section 6601(e)(1)                
               provide that interest is to be treated as tax for all                  
               other purposes in title 26, including section 6512(b).                 
               * * *[9]                                                               


               7(...continued)                                                        
               Baumgardner v. Commissioner, 85 T.C. 445, 448 (1985).                  
               It follows that we also have jurisdiction to determine                 
               whether petitioner has made overpayments of income tax                 
               for the same years.  Sec. 6512(b); Barton v.                           
               Commissioner, supra at 552.  [Winn-Dixie Stores, Inc. &                
               Subs. v. Commissioner, 110 T.C. 291, 295 (1998).]                      
               8The only reference to “overpayment” in subch. B of ch. 63             
          is in sec. 6214(e) which provides:  “For provision giving Tax               
          Court jurisdiction to order a refund of an overpayment and to               
          award sanctions, see section 6512(b)(2).”                                   
               9In Estate of Baumgardner v. Commissioner, 85 T.C. 445, 452            
          (1985), we stated:  “Interest may be part of an overpayment if              
          the interest accrued and was paid prior to the time the                     
          overpayment was claimed or arose.”                                          




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