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Receipt is therefore immaterial to the issues before
the Court.
As explained more fully below, we agree that petitioners’
claim with respect to the disputed refund check does not decrease
the amount of the otherwise agreed-upon deficiency and cannot
give rise to an overpayment in the present circumstances.
1. No Effect on the Agreed-Upon Deficiency
The disputed refund check is immaterial to the calculation
of petitioners’ deficiency. “Deficiency” is a term of art
defined in section 6211. Generally speaking and as relevant
herein, a deficiency is simply the amount by which the “tax
imposed” under the law exceeds the amount of tax shown on the
return. Sec. 6211(a). The determination of a deficiency under
section 6211(a) does not take into account payment or nonpayment
of a claimed EIC. See Wilson v. Commissioner, T.C. Memo. 2001-
139. Moreover, the amount of a deficiency is determined without
regard to the amount of taxes withheld on a taxpayer’s income.
See sec. 6211(a) and (b)(1); Keefe v. Commissioner, 15 T.C. 947,
955-956 (1950).
In the instant case, the “tax imposed” on petitioners’ 2000
income is zero. The tax shown by petitioners on their 2000 tax
return was negative $2,396; i.e., the amount of EIC they showed
on their 2000 tax return and which they now concede is not
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