Patronik-Holder v. Comm'r of Internal Revenue
| Decision Date | 26 April 1993 |
| Docket Number | No. 18048–91.,18048–91. |
| Citation | 100 T.C. 374,100 T.C. No. 24 |
| Parties | Christine PATRONIK–HOLDER, Petitioner, v. COMMISSIONER OF INTERNAL REVENUE, Respondent. |
| Court | U.S. Tax Court |
OPINION TEXT STARTS HERE
Charles C. Stewart, Bedford, OH, for petitioner.
Mario J. Fazio, Willoughby Hills, OH, for respondent.
This case was assigned to Special Trial Judge D. Irvin Couvillion pursuant to the provisions of section 7443A(b)(4) and Rules 180, 181, and 183. 1 The Court agrees with and adopts the opinion of the Special Trial Judge, which is set forth below.
COUVILLION, Special Trial Judge:
Respondent determined a deficiency of $5,437 in petitioner's Federal income tax for 1988 and additions to tax under section 6651(a)(1) of $312.75 and under section 6653(a)(1) of $271.85. In the answer to the petition, respondent claimed an increased deficiency of $5,073, or total deficiency of $10,510; a reduction in the section 6651(a)(1) addition to tax to $100; and an increased section 6653(a)(1) addition to tax of $253.62, or a total of $525.50; and alleged that the claimed refund of $121 for petitioner's overpayment of 1988 tax is barred by section 6512(b).
The issues for decision are: (1) Whether petitioner is entitled to a $1,523 credit to apply to her 1988 Federal income tax as the result of a claimed overpayment of her 1987 Federal income tax; (2) whether petitioner is entitled to a $121 refund for overpayment of her 1988 Federal income tax; (3) whether petitioner is liable for the section 6651(a)(1) addition to tax for 1988 because the joint tax liability of $10,510 was not satisfied by $10,631 of tax withholdings; and (4) whether petitioner is liable for the section 6653(a)(1) addition to tax.
The parties agree that for 1988: (1) Petitioner is entitled to a filing status of married, filing jointly; (2) petitioner's joint income tax liability with her spouse is $10,510; and (3) petitioner's joint income tax liability is subject to withholding credits under section 31(a) totaling $10,631, of which $4,186 was withheld from petitioner's wages, and $6,445 was withheld from her husband's wages.
Some of the facts have been stipulated, and they are found accordingly. Petitioner resided in Cleveland Heights, Ohio, at the time the petition was filed. Petitioner's husband, Timothy D. Holder (Mr. Holder), is not a party to this proceeding because the notice of deficiency was addressed only to petitioner.
At the time the notice of deficiency was mailed, neither petitioner nor her spouse, Mr. Holder, had filed, either jointly or separately, any Federal income tax return for 1988. Based upon information provided by payors to the Internal Revenue Service (IRS), a notice of deficiency was sent only to petitioner for 1988, in which respondent determined the $5,437 tax deficiency based upon salary and wages of $30,757.66 earned by petitioner and reported to the IRS on Form W–2, Wage And Tax Statement. The deficiency was calculated upon petitioner's filing status as married, filing separately, the allowance of one personal exemption, and the standard deduction. The notice of deficiency allowed a $4,186 credit for withholding prepayments, with a balance of $1,251 owing in tax, plus the additions to tax.
After the notice of deficiency was mailed, petitioner and Mr. Holder had several conferences with IRS agents and Appeals officers. In the course of these conferences, they disclosed their joint income and expenses and prepared a joint Federal income tax return for 1988. Although petitioner and Mr. Holder prepared two Forms 1040, U.S. Individual Income Tax Return, for 1988, with slightly different numbers on the two returns, and there is some dispute between them as to the date petitioner and her spouse “filed” their return with the IRS, the parties do not dispute, as noted above, a joint income tax liability for 1988 of $10,510, withholding credits of $10,631, and petitioner's filing status as married, filing jointly.2 None of the items of income, deductions, credits, or exemptions are in dispute. The IRS never assessed the tax liability shown on petitioner's joint return nor did petitioner and Mr. Holder agree or consent to assessment of the tax.
The first issue is whether petitioner is entitled to a $1,523 credit to apply to her 1988 Federal income tax as the result of a claimed overpayment of her 1987 Federal income tax. Petitioner contends that the 1987 Federal income tax of Mr. Holder and herself has been overpaid by $1,523, and this amount should be applied or credited to her 1988 joint tax liability. This Court is without jurisdiction to grant such relief. The notice of deficiency which is before the Court in this case pertains only to petitioner's 1988 tax year. The 1987 tax year is not before this Court. Section 6214(b) provides, in pertinent part:
The Tax Court in redetermining a deficiency of income tax for any taxable year * * * shall consider such facts with relation to the taxes for other years * * * as may be necessary correctly to redetermine the amount of such deficiency, but in so doing shall have no jurisdiction to determine whether or not the tax for any other year * * * has been overpaid or underpaid.
Moreover, the jurisdiction of this Court under section 6512(b)(1) with respect to determining an overpayment is limited to the taxable year before the Court. Because the year 1987 is not before the Court, we have no jurisdiction to determine whether petitioner and her spouse in fact overpaid their 1987 taxes, and, if so, whether such overpayment may be credited, refunded, or applied to the 1988 tax year, which is before the Court in this proceeding.
The second issue is whether petitioner is entitled to a $121 refund for overpayment of her 1988 Federal income tax. Petitioner contends that, because her joint income tax liability for 1988 is $10,510, and the withholding credits total $10,631, both of which are undisputed, she is entitled to a refund of $121.
In determining whether the amount withheld in excess of the joint tax liability should be credited or refunded, we note that section 6512(a) and (b)(1) vests this Court with jurisdiction to determine the existence and amount of any overpayment of tax to be credited or refunded for any year before the Court.3 However, section 6512(b)(3) limits the amount of the allowable credit or refund based on the date the tax was paid. For example, the tax must be paid either after the mailing of the deficiency notice or within certain periods of limitations for filing a claim for credit or refund. Accordingly, the question of limitations first comes into focus in section 6512(b)(3), which provides, in part, as follows:
(B) within the period which would be applicable under section 6511(b)(2), (c), or (d), if on the date of the mailing of the notice of deficiency a claim had been filed (whether or not filed) stating the grounds upon which the Tax Court finds that there is an overpayment, or
(C) within the period which would be applicable under section 6511(b)(2), (c), or (d), in respect of any claim for refund filed within the applicable period specified in section 6511 and before the date of the mailing of the notice of deficiency * * *.
Next, it is necessary to decide the date upon which petitioner's withheld amounts are deemed to have been paid. Section 6513(b)(1) provides, in general, that any tax deducted and withheld at the source during any calendar year shall “be deemed to have been paid by him on the 15th day of the fourth month following the close of his taxable year with respect to which such tax is allowable as a credit under section 31.” Thus, all of the taxes withheld from the wages of petitioner and her spouse during 1988 ($10,631) are deemed to have been paid on April 15, 1989.
The next consideration is the time limitations provided for the allowance of credits and refunds. In this case none of the payments in question were made after the mailing of the notice of deficiency. See sec. 6512(b)(3)(A). Before the mailing of the deficiency notice, petitioner had not filed a Federal income tax return for 1988 nor had she filed any claim for credit or refund of an overpayment for 1988. See sec. 6512(b)(3)(C). Consequently, section 6512(b)(3)(B) limits the amount to be credited or refunded to that portion of the tax the Court determines to have been paid within the 2–year period applicable under section 6511(b)(2)(B).4 A claim for refund need not actually be filed, because section 6512(b)(3)(B) only requires that a timely claim could have been filed seeking an overpayment at the time the deficiency notice was mailed.
The notice of deficiency in this case was mailed on May 22, 1991. Under section 6512(b)(3)(B), petitioner is deemed to have filed a claim for credit or refund on the date the notice of deficiency was mailed. See Allen v. Commissioner, 99 T.C. –––– (1992); Berry v. Commissioner, 97 T.C. 339 (1991); Davison v. Commissioner, T.C.Memo. 1992–709. Accordingly, under the 2–year period of limitation of section 6511(b)(2)(B), petitioner is entitled to a refund of any payments in excess of her tax which were made on or after May 22, 1989. There were no such payments or withholdings. Therefore, we hold that petitioner is not entitled to a refund for the overpayment in 1988.5
The third issue is whether petitioner is liable for the section 6651(a)(1) addition to tax. Section 6651(a)(1) imposes an addition to tax in case of failure to file a timely tax return, unless it is shown that such failure is due to reasonable cause and not due to willful neglect. This...
To continue reading
Request your trial
-
Mueller v. Comm'r of Internal Revenue (In re Estate of Mueller)
...definition of deficiency in section 6211 4 by giving effect to each element of that statutory definition.5 E.g. Patronik–Holder v. Commissioner, 100 T.C. 374, 381 (1993); Kroh v. Commissioner, 98 T.C. 383, 392–397 (1992); 6 Baldwin v. Commissioner, 97 T.C. 704 (1991); White v. Commissioner,......
-
Boecking v. Commissioner
...20. The so-called minimum penalty imposed by the flush language at the end of sec. 6651(a) does not apply. See Patronik-Holder v. Commissioner [Dec. 49,003], 100 T.C. 374 (1993). ...
-
Lundy v. I.R.S.
...(P-H) 93,104, 1993 WL 81526 (1993); DiPlacido v. Commissioner, T.C.M. (P-H) 93,169, 1993 WL 118064 (1993); Patronik-Holder v. Commissioner, 100 T.C. 374, 1993 WL 128151 (1993); Olmstead v. Commissioner, T.C.M. (P-H) 93,216, 1993 WL 166940 (1993). Furthermore, since the Tax Court decided Lun......
-
Laney v. Commissioner, Docket No. 24510-90.
...807 F.2d 81 (6th Cir. 1986); Wilkinson v. Commissioner [Dec. 39,223(M)], T.C. Memo. 1982-429; see also Patronik-Holder v. Commissioner [Dec. 49,003], 100 T.C. 374, 379-381 (1993); Stevens Bros. Foundation. Inc. v. Commissioner [Dec. 25,708], 39 T.C. 93, 133-134 (1962), affd. in part and rev......