Daniel C. Greer and Winnie L. Greer - Page 22

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         United States, supra.  The District Court ordered the repayment,             
         and petitioners had not waived the restrictions on assessment                
         which arose when the partnership action was filed in the Tax                 
         Court.  The District Court specifically noted in the Order that              
         the amount petitioners had paid was a prerequisite to filing the             
         action in District Court.  The District Court also ordered the               
         repayment to include interest, thus putting petitioners in the               
         position they were in before filing the amended returns and                  
         protective claims, which meant the petitioners remained liable for           
         the entire potential deficiencies and penalties that could result            
         from the Tax Court partnership case and this current matter.                 
              Respondent’s representative in the District Court action                
         asserted the remittance made by petitioners could not be assessed            
         at that time, and we agree.  We do not find the remittance was an            
         unassessed amount collected as a deficiency.                                 
              In conclusion, we hold that respondent has correctly computed           
         the amount of the underpayment of tax related to the section                 
         6653(a)(2) addition to tax.                                                  
              The remaining issue is the addition to tax under section 6659           
         for a valuation overstatement of at least 150 percent of the                 
         amount determined to be correct on any return.  Section 6659 has             
         since been repealed but was applicable at the time the partnership           
         return was filed.  The addition to tax has previously been held to           
         be applicable to carryback years before its enactment.  See                  

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