T.C. Mem o. 2 01 6- 12 8

UNITED STAT ES TAX COURT

GONZALO LUQUE AND MARIBEL LUQUE, Peti ti on ers v. COMM ISSI ONER OF INTERNAL REVENUE, Resp on de nt

Doc ke t No . 10 71 2- 14 . Fi le d J ul y 7, 2 01 6.

Ps fil eda 20 11 return, wh ic h R pro ces se d i n M ay

20 12 , th at sh owe d a n o ve rp aym en t o f in co m e ta x due to ov erwi th ho ld in g fr om wag es . Accor di ng to do cu m en ta ti on R subm it te d, as of Ap ril 15 , 20 12 , Ps' o ve rp aym en t fo r 20 11 was c red it edag ai ns t t he ir 2 00 9 t ax li ab il it y . R th ende te rm in eda de fic ie nc y in Ps' 2 01 1 i nc om e ta x, whi ch he no w con ced es . R m ov edforen try of d eci si on th atth ere i s no de fic ie nc y

du e fro m , no r an y

ov erp aym en t due to , Ps fo r 20 11 . Ps m ov edforen try of d eci si on th atth ey are due a refu ndof t he am ou nt ov erwi th he ldfor20 11 . Held : Be cau se R es tabl is he d t ha t the cred it in g o f th e ov erp aym en t s ho wn o n P s' 2 01 1 re tu rnas o f th e due da te of t ha t return was co ns is te ntwith e st ab li sh edpra ct ic e, th e d oc um en ta ti on th atR subm it te d i s re li ab le ev id en ce tha t t he ov erp aym en t was , in fact , cred it ed . Held , furth er, b ecau se I.R.C. s ec. 6 40 2 a ll ows forth e cre di ti ng of refu nd s s ho wn o n areturn b efo re a fi na l d et erm in at io n o f th e- 2 -

[* 2] ta xp ay er's tax li ab il ity forth e y ear c ov eredby the return, Ps ' 20 11 ov erp aym en t was cred it edag ai ns t t he ir 2 00 9 t ax li ab il it y "u nd er" I.R.C. s ec. 6 40 2, an d, co ns eque nt ly, th e Co urt h as no juri sd ic ti onto rev ie w th e p ro pr ie ty of th e cre di t. See I.R.C. s ec. 6 51 2( b) (4 ).

Sh ah in Rah im i, fo r pe ti ti on ers . Em eral d G. Sm it h, fo r res po nd en t.

MEMORANDUM OPINION HALPERN, Ju dg e: Res po nd en t d et erm in eda de fic ie nc y in pe ti ti on ers ' 20 11 Fed eral in co m e ta x o f $4 ,77 1. Re sp on de ntco nc ed edth e o nl y ad jus tm en t le ad in g t o h is de te rm in at io n o f th atde fic ie nc y , andth e cas e is be fo re u s o n res po nd en t's an d p et it io ne rs ' co m pe ti ng m ot io ns foren try of d eci si on(m ot io ns ). The parti es ag ree t ha t the re i s n o d efi ci en cy in in co m e ta x due fro m

pe ti ti on ers for 20 11 , andres po nd en t m ov es for en try of d eci si on to th ateffe ct . Peti ti on ers , ho wev er, m ov e fo r en try of a d eci si on th atth ey ov erp ai d t he ir 2 01 1 i nc om e ta x b y $4 ,22 3. Th atam ou ntis th e d iff eren ce b etweenth e am ou ntof i nc om e ta x wi th he ld fro m pe ti ti on ers ' 20 11 wage s an d t he am ou ntof t ax sh own on th ei r 20 11 return. Res po nd en t ap pa ren tl y

ag rees th atpe ti ti on ers ' 20 11 return c orrect ly stat edth ei r ta x l iabi li ty for tha t year, andhe do es no t d is pu te th e am ou ntcla im edas wi th he ld .- 3 -

[* 3] Ins te ad , res po nd en t al le ge s t ha t h e cre di te d the $4 ,22 3 o ve rp aym en t s ho wn o n pe ti ti on ers ' 20 11 return a ga in stth ei r as se ss edbu t n otful ly pai d 2 00 9 i nc om e ta x li ab il it y an d t ha t the cred itreduc es th ei r 20 11 ov erp aym en t t o z ero . Res po nd en t al so arg ue s t ha t s ect io n 6 51 2( b) (4 ) de ni es th is Co urt juris di ct io n t o re vi ew th e pr op rie ty of th e cre di t. Pet it io ne rs arg ue , firs t, tha t re sp on de ntfai le d t o de m on st rat e th atth e cre di t o f th e o ve rp aym en t s ho wn o n t he ir 2 01 1 re tu rnag ai ns t th ei r 20 09 tax li ab il it y

actua ll y oc cu rred . In ad di ti on , pet it io ne rs arg ue th at , be cau se th ei r 20 11 in co m e ta x l iabi li ty has no t yet be enfin al ly det erm in ed , any cred itof t he ir 2 01 1 o ve rwit hh ol di ng th atactua ll y oc cu rredwas n otm ad e "u nd er se ct io n 6 40 2" . Con se qu en tl y , acco rd in g t o p et it io ne rs , sec ti on 65 12 (b )(4 ) do es no t p rev en t thi s C ou rt f

ro m rev ie win g t he pro pr ie ty of th e cre di t. Onth e p rem is e th atth ey ha d n o d efi ci en cy

for20 09 ag ai ns t wh ic h t he ir 2 01 1 o ve rwit hh ol di ng co ul d b e p ro pe rly cred it ed , pet it io ne rs askth atwe de te rm in e anov erp aym en t o f $4 ,22 3 fo r 20 11 . On M arch 29 , 20 16 , we is su edanord er co nc ern in g t he m ot io ns in whi ch we ad dr es se d a ndreject edpe ti ti on ers ' juri sd ic ti on al arg um en t. We, didno t, h owe ve r, di sp os e o f th e m ot io ns . Ins te ad , we ord eredres po nd en t t o a ddres s s eem in g an om al ie s b etweenhi s re pr es en ta ti on s an d e nt rie s o n t he off ic ia l re co rd s h e subm it te d i n s up po rt o f hi s m ot io n. Be cau se th ere m ay be ge ne ral in te res t i n- 4 -

[* 4] res po nd en t's reco nc il ia ti on of t ho se see m in g a no m al ie s (areco nc il ia ti onwe acce pt ), we us e th is op po rtu ni ty to m ak e th atreco nc il ia ti onpubl ic . For co m pl et en es s, we b eg in by inc lu di ng fro m ou r or de r ou r rea so ns forreject in g pe ti ti on ers ' arg um en t tha t s ect io n 6 51 2( b) (4 ) do es no t d en y us juri sd ic ti on to rev ie w th e p ro pr ie ty of res po nd en t's cred itof t he ir 2 01 1 o ve rp aym en t ag ai ns t t he ir li ab il it y ass es se d fo r 20 09 . Unl es s o th erwi se in di cat ed , all sec ti on refe ren ces are t o t he Int ern al Rev enue Co de in effe ctfor20 11 . Bac kg ro un d Whe n atax pay er fi le s a r eturn fo r a t ax ab le y ear t ha t s ho ws p aym en ts of t ax in ex ces s o f ta x l iabi li ty, in st eadof r efu nd in g t he in di cat edov erp aym en t t o t he ta xp ay er, the Co m

m is si on er m ay

in st eadcred itth e am ou ntof t he ov erp aym en t ag ai ns t t he tax pa y er's tax li ab il it ie s fo r ot he r ta xabl e y ears . Sec. 6 40 2( a). The Co m m is si on er's cred it in g o f a ref un d fo r on e y ear a ga in sta ta x l iabi li ty for an ot he r y ear d oe s n otpre ve ntth e Co m m is si on er fro m

lat er d et erm in in g ade fic ie nc y for th e y ear f ro m whi chth e ref

un d a ro se . Sav ag e v . Comm is si on er, 1 12 T.C. 46 , 48
- 49 (19 99 ). If th e ta xp ay er the n fi le s a t im el y pe ti ti on with t hi s C ou rt, we " ha ve juri sd ic ti on to red et erm in e th e co rrec t am ou ntof t he de fic ie nc y ". Sec . 62 14 (a). If we fi nd"tha t the re i s n o d efi ci en cy an d * * * th atth e ta xp ay er h as m ad e an- 5 -

[* 5] ov erp aym en t o f in co m e ta x" forth e y ear b efo re u s, we " ha ve juri sd ic ti on to de te rm in e th e am ou ntof s uc h o ve rp aym en t" an d o rd er tha t tha t am ou nt"b e cred it edor r efu nd edto th e ta xp ay er." Se c. 65 12 (b )(1 ). In d et erm in in g t he ex is te nc e an d am ou ntof a ny ov erp aym en t, we m us t t ak e in to acco un t the ex te ntto whi chth e Co m

m is si on er p rev io us ly credi te d a ny ov erp aym en t s ho wn o n t he ta xp ay er's return fo r th e y ear b efo re u s ag ai ns t t he tax pa y er's tax li ab il it y for an ot he r y ear. Se e Bel lo ff v . Comm is si on er, 9 96 F.2d60 7, 6 12 -6 13 (2dCir . 19 93 ), aff'g T.C. Mem o. 1 99 1- 35 0. Alt ho ug h, i n e xe rci si ng ou r juri sd ic ti on un de r se ct io n 6 51 2( b) fora ta xabl e y ear b efo re u s, we m

us t t ak e in to acco un t an y pri or cred it s al lo wedby the Co m m is si on er u nd er s ect io n 6 40 2( a) fro m th aty ear t o a no th er y ear, o ur juri sd ic ti on do es no t ex te ndto weig hi ng th e m eri ts of t he ass es se d l iabi li ty agai ns t whi chth e cre di t was ap pl ie d. As th e Co urt o f App eal s fo r th e Sec on d C irc ui t wro te in Bel lo ff v . Comm is si on er, 9 96 F.2dat 6 12 : "A v al idIRS as se ss m en t wi ll or di na ril y pro vi de a pr op er b as is forth e ap pl ic at io n o f anov erp aym en t i n sa ti sf act io n o f th e as se ss m en t, s o t he Tax C ou rt wi ll no t b e o bl ig edto weig h o r de te rm in e th e m eri ts of t he ass ert edli ab il ity un de rlyin g t ha t as se ss m en t" . Co ng res s l at er co di fie d the Co urt o f App eal s' d eci si on in Bel lo ff b y ad di ng to th e Co de sec ti on 65 12 (b )(4 ), whi ch pro vi de s: "The Tax C ou rt s ha ll ha ve no- 6 -

[* 6] juri sd ic ti on un de r th is subs ect io n t o re strai n o r rev ie w any cred itor r educ ti on m ad e b y th e Sec ret ary un de r se ct io n 6 40 2." As we ex pl ai ne d i n Win n- Dix ie St or es , Inc . v. Co m

m is si on er, 1 10 T.C. 29 1, 2 94 (19 98 ): " Sect io n 6 51 2( b) (4 ) res tri ct s o urjuri sd ic ti on in two si tu at io ns . Firs t, we m ay no t re st rai n o r pr ev en t res po nd en t fr om

reduc in g arefu ndby w ay of c red itor r educ ti on pu rs uantto se ct io n 6 40 2. Se co nd , we m ay no t re vi ew th e v al id it y

or m eri ts of a ny redu ct io n of a refu ndun de r se ct io n 6 40 2 a fte r su ch reduc ti on ha s b een m ad e b y res po nd en t." Bu t wh il e we m ay

no t " rev ie w th e v al id it y

or m eri ts " o f a cre di t i n t he sen se of ev al ua ti ng th e p os it io n u nd erl y in g t he ass es sm en t ag ai ns t wh ic h the cred itwas al lo wed , th e ex erci se of o ur juri sd ic ti on un de r se ct io n 6 51 2( b) st il l re qu ire s t ha t we ve rif y th atth e cre di t was in factall owe d a ga in stanass es se d l iabi li ty. Pet it io ne rs arg ue th atan y ap pl ic at io n o f th e o ve rp aym en t s ho wn o n t he ir 20 11 return a ga in stth ei r ta x l iabi li ty for 2 00 9 was no t m ad e "u nd er" sec ti on 64 02 (a) a ndth at , con se qu en tl y , ou r ab il it y to rev ie w th atall owa nc e is no t l im it ed by sect io n 6 51 2( b) (4 ). Sect io n 6 40 2( a) al lo ws fo r th e g ran ti ng of acred itfor "the am ou ntof * * * [an ] ov erp aym en t" an d, p et it io ne rs arg ue , an " ov erp aym en t" fora y ear c an no t ex is t u nt il a fi na l d et erm in at io n o f th e ta xp ay er's li ab il it y forth aty ear is m ad e. W e d is ag ree wi th th e p rem is e o f pe ti ti on ers ' arg um en t. Sec ti on 64 02 (a) ap pl ie s t o t he cred it in g o f refu nd s s ho wn o n areturn e ve n b efo re an y fin al- 7 -

[* 7] de te rm in at io n o f th e ta xp ay er's tax li ab il it y forth e y ear c ov eredby the return. InSav ag e v . Comm is si on er, 1 12 T.C. at 4 8- 49 , forex am pl e, we co nc lu de d t ha t, aft er re lying on sec ti on 64 02 (a) t o app ly a tax pa y er's ov erp aym en t fo r on e y ear ag ai ns t t he tax pa y er's li ab il ity foran ot he r y ear, " th e Co m m is si on er i s n ot pr ecl ud edfro m

subs eque nt ly det erm in in g ade fic ie nc y for th e ta xabl e y ear i n res pe ctof wh ic h t he ov erp aym en t was ori gi na ll y cla im edan d a ll owe d." See al so se c. 30 1.6 40 2- 3( a)(5 ) an d (6 ), Pro ced . & Adm in . Reg s. (a ll owi ng a refu ndsh own on a return t o b e cre di te d u nd er s ect io n 6 40 2 a ga in stan y ou ts tand in g t ax li ab il it y of th e ta xp ay er). Ob vi ou sl y , if the Co m m is si on er ca n s ti ll de te rm in e a d efi ci en cy fo r th e ta xabl e y ear tha t g en erat edth e cre di t, the ov erp aym en t i ni ti al ly credi te d un de r se ct io n 6 40 2( a) ca nn otha ve be enba se d o n afin al de te rm in at io n o f th e ta xp ay er's tax li ab il ity

forth aty ear. Th eref

or e, we acc ep t tha t s ect io n 6 51 2( b) (4 ) li m it s o urab il ity

to rev ie w res po nd en t's cred it in g o f th e o ve rp aym en t s ho wn o n pe ti ti on ers ' 20 11 return a ga in stan y li ab il it ie s as se ss edfor20 09 . Butwe do no t readsec ti on 65 12 (b )(4 ) to pre ve ntus fro m ve rif y in g, i n t he ex erci se of o ur juri sd ic ti on un de r se ct io n 6 51 2( b) (1 ), th atth e cre di t re sp on de ntpro fes se s t o h av e m ad e was actua ll y

ap pl ie d. To th e ex te ntth atpe ti ti on ers are as ki ng us to go fu rth er an d e va lu at e th e li ab il it y ag ai ns t wh ic h re sp on de ntcla im s t o h av e ap pl ie d th ei r 20 11 refu nd , we dec li ne to do so . Peti ti on ers ' 20 09 tax ab le y ear i s n otbe fo re- 8 -

[* 8] us , andsec ti on 65 12 (b )(4 ) pr ev en ts us fro m co ns id eri ng th ei r li ab il it y forth at y ear. To th e ex te ntth atpe ti ti on ers are ar gu in g t ha t, ev enif re sp on de ntdi d c red it th ei r 20 11 ov erp aym en t ag ai ns t an ass es se d l iabi li ty for 2 00 9, the ir o ve rp aym en t fo r 20 11 is no t re du ced , we rejectth atarg um en t as un supp orte d b y th e la w. See, e.g ., Bell of

f v. C omm is si on er, 9 96 F.2dat 6 12 -6 13 . Pet it io ne rs do , ho wev er, rai se va li d que st io ns ab ou t re sp on de nt 's app li cat io n of th e cre di t i n i ss ue . Tho se qu es ti on s d es erv e an swe rs . Res po nd en t cl ai m s t ha t, un de r hi s s ect io n 6 40 2( a) au th or it y , he c red it edth e o ve rp aym en t p et it io ne rs rep orte d o n t he ir 2 01 1 re tu rnas a n o ffs etag ai ns t a l iabi li ty the y owedfor20 09 . In supp ort o f th atcla im , res po nd en t s ub m it te d c ert ifi edco pi es of I nt ern al Rev enue Serv ic e Fo rm

43 40 , Cert ifi cat io n o f Ass es sm en ts , Paym en ts , andOth er Sp eci fie d Mat te rs , foreach of p et it io ne rs ' tax ab le (cal en da r) y ears 20 09 an d 2 01 1 (2 00 9 Fo rm 43 40 an d 2 01 1 F orm

43 40 , res pe ct iv el y ). On the 20 11 Fo rm 43 40 , th e en try "Re tu rnfil ed& Tax Ass es se d" ap pe ars ne xtto th e d at e Apr il 15 , 20 12 . The as se ss m en t d at e, ho wev er, i s s ho wn as May 21, 2 01 2. Th e 2 01 1 F orm 43 40 als o sh ows ex ces s wi th ho ld in g o f $4 ,22 3 a nd , on Apri l 1 5, 2 01 2, anov erp aym en t cred ittra ns fer o f th atsame am ou ntto pe ti ti on ers ' 20 09 tax y ear a cco un t. The 20 09 Fo rm

43 40 sh ows anov erp aym en t cr ed itof $ 4,2 23 fro m 20 11 ap pl ie d o n Apr il 15 , 20 12 .- 9 -

[* 9] Res po nd en t al le ge d i n h is m ot io n, h owe ve r, th at"[p ]etit io ne rs fil edth ei r 20 11 tax return l at e, an d re sp on de ntpro ces se d t he return o n M ay 21 , 20 12 ." Pet it io ne rs fai rly ask

ho w res po nd en t co ul d h av e cre di te d t he ov erp aym en t s ho wn on th ei r 20 11 return t o t he ir 2 00 9 a cco un t b efo re p ro ces si ng th atreturn. Mo reo ve r, be cau se pe ti ti on ers ' 20 11 return wo ul d h av e b eenti m el y if fi le d o n Apr il 17 , 20 12 (Apr il 15 ha vi ng fal le n o n aSund ay an d Ap ril 16 havi ng be ena ho li da y in th e Dis tri ctof C ol um

bi a), i f th ey

fil edth ei r return l at e, as res po nd en t al le ge d, t he 20 11 Fo rm

43 40 onwhi ch he rel ie s wo ul d s ho w th e cre di ti ng of t he rep orte d o ve rp aym en t as ha vi ng oc cu rredev enbe fo re p et it io ne rs fil edth ei r return. Alt ho ug h t he qu es ti on of wh ethe r th e o ve rp aym en t re po rte d o n p et it io ne rs ' 20 11 return was cred it edto th ei r 20 09 acco un t i s m or e im po rta ntth anpre ci se ly whe n tha t cr ed itwas a ll owe d, t he am bi gu it y in th e d at es on th e certi fic at io ns (i.e ., Fo rm s 4 34 0) res po nd en t s ub m it te d c al le d i nt o que st io n t he rel iabi li ty of res po nd en t's cert ifi cat io ns as e vi de nc e th atth e cre di t was , infact , all owe d. Bec au se of t he qu es ti on s ra is edby resp on de nt 's c ert ifi cat io ns , we di d n otvi ew th em as a de qu at e, of

th em se lv es , to subs ta nt ia te res po nd en t's cla im th athe ap pl ie d th e o ve rp aym en t s ho wn o n p et it io ne rs ' 20 11 return a ga in stth e li ab il it y ass es se d fo r 20 09 . W e th eref

or e o rd eredres po nd en t t o a dd res s t he am bi gu it y reg ard in g t he ti m in g o f th e al le ge d c red itin rel at io n t o t he fil in g a ndpro ces si ng of p et it io ne rs '- 10 -

[* 10 ] 20 11 return. Re sp on de ntha s d on e so (res po nd en t's res po ns e), an d we wi ll de sc rib e h is res po ns e. Dis cu ss io n Res po nd en t's Res po ns e Res po nd en t b eg in s b y

st at in g (c orrect ly) tha t s ect io n 6 40 2 a ll ows hi m to cred itanov erp aym en t ag ai ns t a t ax pa y er's li ab il it ie s fo r ot he r ta xabl e y ears . He th enad dr es se s the pro cedur es forap pl y in g a n o ve rp aym en t cr ed it . 1. Fo r th e p ur

po se s o f th e ap pl ic at io n o f th e o ve rp aym en t cr ed it , th e ov erp aym en t i s co ns id eredav ai labl e fo r of fs eton it s av ai labi li ty dat e, whi chis de te rm in edby the pa ym en ts co ns ti tu ti ng th e o ve rp aym en t. See Int ern al Rev enue Man ua l (I RM) pt . 20 .2.4 .3.1 (Sep t. 3 , 20 10 ). 2. In acco rd an ce wi th sec ti on 65 13 (b ), th e In te rn al Rev enue Serv ic e (IR S) cred it s wi th ho ld in g t o atax pa y er's acco un t o n t he da te th e ta x re tu rnforth aty ear is du e. The c red it s ar e ap pl ie d a s o f th e due da te , witho utreg ardto an y ex te ns io n of ti m e to fil e an d wh ethe r th e return i s fi le d t im el y or l at e. Id . 3. Th eref or e anov erp aym en t co m

pr is in g p rep aym en t cr ed it s, s uc h a s wit hh ol di ng , is av ai labl e to be us edas an o ffs etas o f th e d at e th e return i s due , ev enif the return i s fi le d o r pr oc es se d a fte r th e due da te . This be ne fit s t he- 11 -

[* 11 ] ta xp ay er, as th e p aym en t wi ll be ap pl ie d t o t he acco un t wi th a li ab il it y at a n earl ie r da te , pre ve nt in g s om e in te res t ac cru al . W it h re sp ectto pe ti ti on ers ' 20 11 tax y ear, re sp on de ntco nt rad ic ts hi s ea rli er cl ai m th atpe ti ti on ers fil edth ei r 20 11 return l at e. He expl ai ns th at , bec au se pe ti ti on ers ' 20 11 ov erp aym en t o f $4 ,22 3 re su lt edfro m ex ces s wi th ho ld in g fo r th at y ear, i t was a "p rep aym en t" cred it , ava il ab le to res po nd en t t o o ffs etpe ti ti on ers ' 20 09 tax y ear d eb t as of Ap ril 15 , 20 12 , eve n t ho ug h p et it io ne rs ' 20 11 return was no t p ro ces se d u nt il a la te r da te . Res po nd en t ad ds th at , inpro ces si ng returns , eve n wh enth e la stda y for fil in g areturn i s a S atur da y , Sun da y , or l eg al ho li day (wit ho utdi st in ct io n, ho li da y ), so th atreturns fil edon th e n ex t d ay th atis no t a h ol id ay

are co ns id ered ti m el y , th e IRS co ns id ers th os e d eem edti m el y returns as f

il edon th e d ay

on whi ch , witho utex te ns io n, t he y were due . IRM p t. 3 .30 .12 3.2 .2 (2 ) an d (3 ) (J an . 1, 20 10 ). Forth atreas on , th e due da te wil l ap pe ar as Apri l 1 5 i n IR S syste m s ev en fo r y ears in whi ch th e due da te is ex te nd edbe cau se of h ol id ay s. Th at , res po nd en t ex pl ai ns , all ows th e IRS to av oi d re pr og ramm in g a ll of i ts syste m s fo r ev ery y ear in whi cha ho li da y

ex te nd s t he ti m e to fil e returns . Res po nd en t s up po rts hi s re sp on se with t he de cl arat io n o f Kin dr a Whit e, an App eal s o ffi cer wh o wo rk edonpe ti ti on ers ' cas e an d wh o, b y he r de cl arat io n,- 12 -

[* 12 ] ex pl ai ns ho w to in te rp retth e 2 01 1 i nt eg rat edda taretrie va l s y st em (IDRS) tra ns cri ptan d a no th er IDRS tra ns cri pt(20 09 IDRS tran sc rip t) t ha t ac co m pa ni ed res po nd en t's res po ns e. Inpe rti ne ntpa rt, M s. Whit e st at es th e fo ll owi ng . 1. Th e IRS us es th e IDRS t o k eep tra ck of t he act iv it y

ontax pa y ers ' acco un ts , in cl ud in g a ss es sm en ts an d p aym en ts . 2. In th e IDRS, ev ery trans act io n e ntry in cl ud es a "p os te d d at e" a nda "cycle n um

be r." 3. Th e "p os te d d at e" re fle ct s t he effe ct iv e d at e o f th e tr an sa ct io n. Whil e th is is so m et im es th e d at e whe n t he tra ns act io n was ph y si cal ly pro ces se d, t ha t i s no t al way s t he cas e. Fo r ex am pl e, pr ep aym en t cr ed it s wi ll ha ve a "p os te d d at e" o f th e return due da te , eve n i f th e actua l p aym en ts were re cei ve d b y th e IRS be fo re th e due da te of t he return b ecau se pre pa ym en ts of i nc om e ta x a re co ns id eredpa id "o n the las t d ay

pre sc rib edforfil in g t he return u nd er s ect io n 6 01 2 fo r su ch tax ab le y ear. I.R.C . § 6 51 3( b) (1 ) [s ic . (2) ]; Baral v. Un it edSta te s, 5 28 U.S. 43 1 (2 00 0) ." 4. Th e "c y cl e num

be r" i nd ic at es when du rin g t he cal en dar y ear t he tra ns act io n was pro ces se d. Th is nu m be r refl ect s a t hr ee-s te p p ro ces s i n t he IDRS. The fir stst ep is th e "re le as e o f th e tr an sa ct io n." Thi s i s wh enth e tr an sa ct io n i s read y to be po st edin th e syst em . In the sec on d s te p, t he "p os te d tran sa ct io n ap pe ars on IDRS." Atth is po in t t he tra ns act io n i s p en di ng in th e syst em an d- 13 -

[* 13 ] subjec t t o c hang e. The t hi rdst ep is "as se ss m en t o r sc he du le d d at e." Atth is st ep th e tr an sa ct io n wi ll be off ic ia ll y po st edto th e acc ou nt . The d at e o f th is th ird st ep wil l b e th e "p os ti ng da te " fo r an y en try whic h d oe s n otot he rwis e h av e a de si gn at edeffe ct iv e d at e. Ms . Whi te att ach edto he r de cl arat io n ali stof t he cy cl e num be rs for 20 12 , wit h t he ir c orres po nd in g d at es . Accor di ng to th atli st , th e cycle num be r 20 12 19 co rres po nd s t o atra ns act io n o ffi ci al ly relea se d b y May 2, 20 12 , app eari ng on th e IDRS b y May 7, 20 12 , andpo st edby May 21 , 20 12 . Inhe r de cl arat io n, s he st at es th atIDRS tran sc rip ts als o c on ta in tra ns act io n co de s, i nd ic at in g the type o f tr an sa ct io n e nt eredin to th e syst em . She st at es th at th e fo ll owi ng tra ns act io n c od es ap pe ar o n the IDRS ac co un t t ran sc rip ts for pe ti ti on ers ' 20 09 an d 2 01 1 t ax y ears :

a. 15 0- -Return fi le d; b. 8 06 --Cr ed itforwithh ol di ng ; c. 82 6- -Ov erp aym en t t ran sf erre d t o a no th er ac co un t; an d d. 7 06 --Ov erp aym en t ap pl ie d fr om an othe r ta x year. Fi na ll y , Ms . W

hi te st at es th at , onpe ti ti on ers ' 20 09 an d 2 01 1 IDR S acc ou nt tra ns cri pt s, the same cy cl e num be r, 20 12 19 , app ears forth e "R eturn fi le d" , "Cre di t fo r wit hh ol di ng ", an d t he two "Ov erp aym en t" tra ns act io ns (i.e ., a $4 ,22 3- 14 -

[* 14 ] ov erp aym en t tran sf erre d fr om

pe ti ti on ers ' 20 11 tax y ear a cco un t an d app li ed to th ei r 20 09 tax y ear a cco un t). Th is in di cat es to he r th atth ey were p ro ces se d du rin g t he same tim efra m e. The p os ti ng da te s o n t he IDRS ac co un t t ran sc rip ts for th es e tr an sa ct io ns are d iff eren t, s he expl ai ns , bec au se th ey ha ve di ffer en t ef

fect iv e da te s. Th e p os te d d at e fo r Co de 15 0 (r eturn fi le d) for pe ti ti on ers ' 20 11 return i s May 21, 2 01 2, whi le th e p os te d d at e fo r th e res t o f th e tr an sa ct io ns is Apri l 1 5, 1 20 12 . Rel y in g o n M s. Whit e's de cl arat io n, re sp on de ntarg ue s i n h is res po ns e th at th ere was a refu ndoff

se t o f $4 ,22 3 fr om

pe ti ti on ers ' 20 11 tax y ear t o t he ir 2 00 9 ta x year an d t ha t (f

orreas on s p rev io us ly dis cu ss ed ) we d o n otha ve juri sd ic ti on to rev ie w th e m eri ts of t he cred ittra ns fer o r pe ti ti on ers ' li ab il it y forth ei r 20 09 tax y ear, ag ai ns t wh ic h re sp on de ntap pl ie d t he refundoff se t. Ana lysis W e ag ree wi th res po nd en t. Sec ti on 60 72 (a) p ro vi de s i n p ert in en t p artth at , in th e cas e o f a joi ntreturn o f in co m e m ad e wit h re sp ectto a cal en da r y ear, t he return s ha ll be fil edon or b efo re Ap ril 15 of t he fol lo win g year. It i s a s ou rce o f co nf

us io n t ha t t he de sc rip ti on forCo de 15 0- -"r eturn 1 fil ed "-- ap pa ren tl y

refe rs to th e actof p ro ces si ng pe ti ti on ers ' 20 11 tax return, wh il e th e sa m e te rm

"return fi le d" , as u se d o n t he 20 11 Fo rm 43 40 , m ean s t he da te on whi ch , gi ve n t he sec . 75 03 ex te ns io n o f ti m e to fil e a return due on a ho li da y , a ti m el y return wi ll be co ns id eredfil ed .- 15 -

[* 15 ] Sect io n 7 50 3 p ro vi de s i n p ert in en t p art : "Whe n t he las t d ay pre sc rib ed un de r [the ] au th or it y

of the in te rn al rev enue laws forpe rfo rm in g any act fa ll s o n [a] Satu rd ay , Sun da y , or aleg al ho li da y , th e p erfo rm an ce o f su ch actsh al l b e co ns id eredti m el y

if i t i s p erfo rm edon th e n ex t s uc ceed in g d ay whi ch is no t a Satur da y , Sun day , or aleg al ho li da y ." Sect io n 6 51 3( b) (1 ) pr ov id es in pe rti ne ntpa rt t ha t, fo r pu rp os es of t he pe rio d of li m it at io ns on m ak in g acla im forrefu ndor c red itof a n o ve rp aym en t o f ta x, t ax wit hh el d o n wag es of acal en da r y ear t ax pay er i s d eem edto ha ve be enpa idby him on Apri l 1 5 o f th e y ear f

ol lo win g t he y ear f

orwhi chth e wit hh ol di ng was m ad e. In Bara l, the Supr em e Co urt m ad e cl ear tha t re m it ta nc es of wi th ho ld in g wag e ta xe s are " pa id " o n the du e d at e o f a cal en da r y ear t ax pay er's in co m e ta x re tu rnan d n ot on th e d at e th e return i s fi le d o r th e res ul ti ng tax is ass es se d. InMay 201 2, wh enres po nd en t p ro ces se d p et it io ne rs ' 20 11 Fed eral in co m e ta x re turn , itap pe aredto res po nd en t t ha t p et it io ne rs ha d m ad e a $ 4,2 23 ov erp aym en t o f 20 11 in co m e ta x re su lt in g fr om ex ces s wag e withh ol di ng for 20 11 . The wi th he ldtax was d eem edpa idby pet it io ne rs on Apri l 1 5, 2 01 2, an d, as of th atda te , res po nd en t cr ed it edth e ap pa ren t $ 4,2 23 ov erp aym en t s ho wn o n pe ti ti on ers ' 20 11 return a ga in stanass es se d l iabi li ty of pe ti ti on ers for20 09 , whi ch reduc edpe ti ti on ers ' 20 11 ov erp aym en t t o z ero . As ex pl ai ne d b y res po nd en t, an d- 16 -

[* 16 ] as bo rn e o utby the st atut e, itis imm at eri al th atres po nd en t d idno t p ro ces s pe ti ti on ers ' 20 11 return u nt il May 201 2. Itis als o i m m at eri al th atpe ti ti on ers m ay ha ve fil edth ei r 20 11 return l at e, so m et im e aft er Ap ril 17 , 20 12 , andbe fo re Ma y 21 , 20 12 (whi ch res po nd en t n ow d is cl ai m s) . In s ho rt, t he do cu m en ta ti on res po nd en t s ub m it te d e st ab li sh es th atpe ti ti on ers ' $4 ,22 3 o ve rp aym en t o f 20 11 tax was infactcred it edag ai ns t the ir 2 00 9 t ax li ab il it y . For t he reas on s ex pl ai ne d ab ov e (an d i n o urpri orord er), s ect io n 6 51 2( b) (4 ) de ni es us juri sd ic ti on to rev ie w th e p ro pr ie ty of th atcred it . Co nc lu si on W e wil l d en y

pe ti ti on ers ' m ot io n fo r en try of d eci si on , gra ntres po nd en t's
m ot io n fo r en try of d eci si on , and , acco rd in gl y , ent er a d eci si on th atth ere i s n o de fic ie nc y

in tax an d n o re fu nddu e fo r 20 11 . An ap pr op ria te ord er an d d eci si on wil l b e en te red .