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period of limitations on assessment, and the document tends to
disprove respondent's contention that the period of limitations
was lawfully extended beyond April 15, 1995. We therefore
conclude on this record that the period of limitations on
assessment for 1991 expired before the quick assessment was
made.13 The 1991 liability was therefore extinguished on April
15, 1995, before petitioners' 1995 and 1996 overpayments were
applied to it. See Hoffman v. Commissioner, 119 T.C. 140, 150
(2002); Diamond Gardner Corp. v. Commissioner, supra at 879-881.
The same is true regarding associated interest or penalties. See
Hoffman v. Commissioner, supra.
As a consequence, petitioners' 1995 and 1996 overpayments
are available to satisfy liabilities in years other than 1991.
Petitioners filed timely returns for 1995 and 1996 (which
respondent accepted as his basis for concluding there were
overpayments in those years). Petitioners' returns constituted
timely claims for refund of those overpayments. See sec.
301.6402-3(a)(5), Proced. & Admin. Regs. Respondent's purported
application of the overpayments to the extinguished 1991
13 The Form 4340 for 1991 in addition records assessments in
1998 and 1999, after the purported extension of the period of
limitations to Sept. 12, 1995. There is no entry on the Form
4340 suggesting any additional extension of the limitations
period beyond the purported Sept. 12, 1995, extension. Any such
subsequent extension would in any event also be invalid.
Respondent has not addressed these assessments, totaling
$1,217.36, but they are likewise invalid because untimely.
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