- 8 - whatever type of liability he chooses. Wood v. United States, 808 F.2d 411, 416 (5th Cir. 1987); Muntwyler v. United States, 703 F.2d 1030, 1032 (7th Cir. 1983); O’Dell v. United States, 326 F.2d 451, 456 (10th Cir. 1964). Under the voluntary payment rule, when a taxpayer who has outstanding tax liabilities voluntarily makes a payment, the IRS usually will honor a taxpayer’s request as to how to apply that payment. In re Ryan, 64 F.3d 1516, 1522 (11th Cir. 1995). However, the Treasury regulations promulgated under section 6402(a) demonstrate that the IRS does not apply the voluntary payment rule to overpayments. The regulations do provide that a taxpayer can instruct the IRS to credit his overpayment against the estimated tax for the taxable year immediately succeeding the overpayment. Sec. 301.6402-3(a)(5), Proced. & Admin. Regs. However, the regulations mirror the statute and authorize the IRS to override that election and apply the overpayment against “any outstanding liability for any tax”. Sec. 301.6402-3(a)(6)(i), Proced. & Admin. Regs.; see N. States Power Co. v. United States, 73 F.3d 764, 767 (8th Cir. 1996) (citing In re Ryan, supra at 1523 (“[Section 6402], plainly gives the IRS the discretion to apply overpayments to any tax liability”)); Pettibone Corp. v. United States, 34 F.3d 536, 538 (7th Cir. 1994) (section 6402(a) “leaves to the Commissioner’s discretion whether to apply overpayments toPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011