1998 tax refund not credited against 1989 taxes.* A taxpayer's employer submitted $4,104 of withholdings on his behalf to the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. in 1988. Concerned that this would be insufficient, the taxpayer mailed in an additional $1,100 in January 1989. In April 1989, he properly extended the deadline to file his 1988 return to August 15, 1989. However, he did not file the 1988 return until June 1, 1993. That return showed an overpayment o·ver·pay v. o·ver·paid , o·ver·pay·ing, o·ver·pays v.tr. 1. To pay (a party) too much. 2. To pay an amount in excess of (a sum due). v.intr. To pay too much. of taxes of $1,175 which the taxpayer asked the IRS to credit against his 1989 taxes. The IRS refused. The U.S. Supreme Court recently sided with the service. In Baral v. United States (S. Ct. 2-22-00), 85 AFTR AFTR American Federal Tax Reports (Prentice-Hall) AFTR Americans For Tax Reform AFTR Air Force Training Ribbon AFTR Air Force Training Record AFTR atrophy, fasciculation, tremor, rigidity AFTR Atomic Frequency Time Reference 2d 2000463, the Court relied on IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. section 6511 (b)(2)(A), which states that "the amount of the credit or refund shall not exceed the portion of the tax paid within the period immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return." According to this "lookback" rule, the taxpayer missed the deadline because the relevant payment period covered only February 1, 1990, through June 1, 1993. The Court held that since no portion of the tax was paid during this period, no tax credits would be allowed. Relying on Ford v. United States, 618 F.2d 357 (1980), the taxpayer had argued the withholding and estimated tax payments were merely "deposits" and not tax payments until he filed his income tax return on June 1, 1993. The Supreme Court disagreed and held that IRC section 6513(b) required that the withholding and estimated taxes be considered paid on April 15, 1989, which was outside the lookback period. --Michael Lynch, CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. , Esq., professor of tax accounting at Bryant College, Smithfield, Rhode Island Smithfield is a town in Providence County, Rhode Island, United States. It includes the historic villages of Esmond, Georgiaville, Mountaindale, Hanton City and Greenville. The population was 20,613 at the 2000 census. . |
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