Tax Court’s Refusal to Consider Individual’s Refund Claim Erroneous (Wright, CA-2)

The Tax Court’s failure to consider an individual’s argument that he did not receive refund for a tax year at issue was erroneous and, therefore, the case was remanded. The Tax Court was required to determine whether the individual was entitled to and received the refund or whether the refund was used to offset his prior year tax liabilities and, accordingly, credit the individual’s liability, abate the interest and order the IRS to issue the refund.

However, the Tax Court did not abuse its discretion in denying the individual’s request for additional discovery to justify his claim for additional abatement of interest since his request for discovery into all credits, refunds, and overpayments relevant to his tax liabilities was granted by the Tax Court in a prior proceeding. Moreover, the individual did not require discovery to refute the IRS’s interest calculations because the interest accrual was a matter of law and not of evidence.

Vacating and remanding an unpublished Tax Court decision.

R. Wright, CA-2, 2012-1 USTC ¶50,261

Other References:

Code Sec. 6404

CCH Reference – 2012FED ¶38,580.50

Code Sec. 7422

CCH Reference – 2012FED ¶41,688.17

Tax Research Consultant

CCH Reference – TRC IRS: 33,202

CCH Reference –
TRC IRS: 33,410


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