Garrett Lawrence Bailey - Page 6

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          would be returned to the service center for further processing,             
          and that collection activity would recommence.3                             
          1999 Tax Liabilities                                                        
               Petitioner filed his 1999 Federal income tax return on May             
          17, 2001.  Petitioner reported an income tax liability of $9,417            
          and withheld income tax of $9,450.43 and claimed an overpayment.4           
          However, because the 1999 return was filed late, respondent                 
          assessed interest and a late filing addition to tax on September            
          10, 2001.  The 1999 tax liability at issue in this case consists            



               3Various collection notices, including a notice of intention           
          to levy, had been sent to petitioner with respect to his 1995 and           
          1996 tax liabilities before petitioner filed his appeal in April            
          2001.                                                                       
               4On his 1999 return, petitioner claimed total tax payments             
          for 1999 of $12,400.56, consisting of withholding credits of                
          $9,450.43 and estimated tax payments and/or an amount applied               
          from his 1998 return of $2,950.13, a total tax liability of                 
          $9,417, and an overpayment of $2,983.56.  Although respondent               
          credited the withheld income tax of $9,450.43 against                       
          petitioner’s reported tax liability of $9,417 for 1999,                     
          respondent did not credit any estimated tax payments or any                 
          overpayment from 1998 against petitioner’s 1999 tax liability.              
          Because the parties did not include a copy of petitioner’s 1998             
          return in the record, we cannot ascertain whether petitioner                
          claimed an overpayment for 1998.  We note, however, that the Form           
          4340, Certificate of Assessments, Payments, and Other Specified             
          Matters, for 1995 that was admitted into evidence by stipulation            
          shows an overpayment credit of $2,609.30 from 1998 that was                 
          applied to reduce petitioner’s 1995 tax liability on Apr. 15,               
          1999.  We assume, therefore, that petitioner claimed an                     
          overpayment on his 1998 return that was allowed, at least in                
          part, as a credit against his 1995 tax liability.  Petitioner               
          does not assert that respondent failed to give him credit for his           
          1998 overpayment, nor did he introduce any evidence to prove that           
          respondent incorrectly applied petitioner’s tax payments.                   





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