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On June 2, 2003, petitioner’s 1999 joint return was received
by respondent and “processed” on July 14, 2003. Included in the
envelope in which that return was mailed was a $13,178 check (the
1999 check), dated May 27, 2003, payable to respondent, and drawn
on the same checking account as the 1998 check. The 1999 check
was also dishonored for insufficient funds the first time it was
presented for payment on June 5, 2003, but was paid upon
subsequent presentment on June 10, 2003.3 As with the 1998 check,
the amount of the 1999 check represented the amount of tax to be
paid with petitioner’s 1999 return; interest, penalties, or
additions to tax were not included in the amount. Petitioner’s
Social Security number is notated on the 1999 check, but nothing
of the face of the 1999 check directs or suggests to what year it
should be applied.
As it turned out, upon payment after being dishonored,
the proceeds of the 1999 check were not entirely applied to
petitioner’s 1999 outstanding tax liability. Instead the payment
was split between petitioner’s then outstanding income tax
liabilities for 1998, 1999, and 2002, in the amounts of
$10,441.17 (the approximate amount of petitioner’s remaining 1998
liability after the payment made by the 1998 check was taken into
3 Upon being notified by his bank that each check was
dishonored for insufficient funds, petitioner transferred funds
between bank accounts and contacted respondent to request that
each check be presented for a second time.
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Last modified: November 10, 2007