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the amount by which payments exceed the tax, including any
underpayment interest.16
2. Sections 6402(a) and 6512(b)(4)
In his response, respondent explains that the estate’s
refund is less than the $238,847.24 overpayment amount, because
section 6402(a) entitled him to apply part of the $238,847.24 to
assessed but unpaid underpayment interest. Section 6402(a)
provides:
SEC. 6402. AUTHORITY TO MAKE CREDITS OR REFUNDS.
(a) General Rule.--In the case of any overpayment,
the Secretary, within the applicable period of
limitations, may credit the amount of such overpayment,
including any interest allowed thereon, against any
liability in respect of an internal revenue tax on the
part of the person who made the overpayment and shall,
subject to subsections (c), (d), and (e) refund any
balance to such person.
Respondent cites only section 6402 and does not cite or rely
on section 6512(b)(4). However, we address the application of
both sections 6402 and 6512(b)(4). Section 6512(b)(4) provides:
(4) Denial of jurisdiction regarding certain
credits and reductions.--The Tax Court shall have no
jurisdiction under this subsection to restrain or
review any credit or reduction made by the Secretary
under section 6402.
16In field service advice, the Chief Counsel’s National
Office states:
At the time of the overpayment, previous payments of
tax and previous payments of interest merge to become
the refundable amount of the overpayment, regardless of
their previous designation as tax or interest. [Field
Serv. Adv. 2000-12049 (Mar. 24, 2000).]
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