Benson v. C.I.R., 121785 FEDTAX, 19374-83

Docket Nº:19374-83.
Opinion Judge:RAUM, JUDGE:
Party Name:ROBERT T. BENSON and LINDA C. BENSON, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Attorney:JOE B. COX, for the petitioners. KENNETH A. HOCHMAN, for the respondent.
Case Date:December 17, 1985
Court:United States Tax Court
 
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51 T.C.M. (CCH) 136

ROBERT T. BENSON and LINDA C. BENSON, Petitioners

v.

COMMISSIONER OF INTERNAL REVENUE, Respondent

No. 19374-83.

United States Tax Court

December 17, 1985

JOE B. COX, for the petitioners.

KENNETH A. HOCHMAN, for the respondent.

MEMORANDUM OPINION

RAUM, JUDGE:

The Commissioner determined a deficiency in petitioners' 1981 income tax in the amount of $22,604. The facts have been stipulated. The parties have agreed that the correct amount of the deficiency is $19,984. The sole issue tendered to the Court for decision relates to the computation of interest on that deficiency. A threshold question in this respect is whether we have jurisdiction to consider that issue. Since we conclude that we do not have jurisdiction, an abbreviated statement of a rather involved set of facts will suffice for present purposes.

Petitioners timely filed their joint Federal income tax return for 1981 on June 15, 1982, the last day of the automatic extension of time which they had obtained upon timely submission of an appropriate application therefor. On that return petitioners reported taxable income aggregating $166,629 and a tax liability of $74,345. Because their total payments towards their 1981 tax liability amounted to $98,585, they reported an overpayment of $24,240. They chose to apply $20,000 of this claimed overpayment to their 1982 estimated income tax liability. They requested a refund of the remaining $4,240. In September of 1982 they received a refund check in the amount of $4,579.20 representing their $4,240 refund plus interest.

Meanwhile, the IRS had notified petitioners by letter of July 26, 1982, that they had failed to submit the Form 6251 ‘ Alternative Minimum Tax Computation‘ along with their 1981 return. On October 6, 1982, petitioners' CPA sent two letters to the IRS, one of them returning the $4,579.20 refund check, and requesting that it be applied to petitioners' 1982 estimated tax. The second letter enclosed a completed Form 6251 together with certain other forms concerning the recomputation of several credits. As a consequence, petitioners disclosed an alternative minimum tax of $19,984, thus increasing their total 1981 tax liability from $74,345 to $94,329. In that second letter of October 6, 1984, petitioners' CPA expressed an expectation that the IRS would ‘ reduce the application of overpayment‘ to petitioners' 1982 tax...

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