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However, the amount of credit or refund is not unlimited and
is subject to 2 “look-back” periods. Commissioner v. Lundy,
supra. Under the 3-year look-back period, if the claim was filed
within 3 years of the filing of the return, then the taxpayer is
entitled to a refund of taxes paid within 3 years immediately
preceding the filing of the claim. Sec. 6511(b)(2)(A). Under
the 2-year look-back period, if the claim was not filed within
that 3-year period, then the taxpayer is entitled to a refund of
only those taxes paid during the 2 years immediately preceding
the filing of the refund claim. Sec. 6511(b)(2)(B). And if no
claim is filed, the credit or refund cannot exceed the amount
that would be allowable under section 6511(b)(2)(A) or (B) if a
claim were filed on the date the credit or refund is allowed.
Sec. 6511(b)(2)(C).
Moreover, in the case of any overpayment by a taxpayer, the
Commissioner generally may, within the applicable period of
limitations, credit the amount of such overpayment against any
tax liability of that taxpayer. Sec. 6402(a).
Petitioner contends that respondent did not acknowledge the
1986 payment. While respondent’s notice dated June 1, 1987,
indicates otherwise,9 even if petitioner’s contention had merit,
section 6511(a) bars application of the 1986 payment to offset
9 The notice to petitioner clearly indicates “Other
Payments” of “$5,000.00”.
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Last modified: May 25, 2011