The new court reported that even if the 625,one hundred thousand was initially a deposit, they turned into an installment when the Internal revenue service used it to his a fantastic income tax liabilities. To be a deposit below Sec. 6603, the brand new remittance need to be made before the brand new Irs assesses the fresh income tax. Ahmed debated the way it is wasn’t moot as the 625,100 is actually simply a deposit and not an installment of one’s tax.

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The brand new Tax Judge does not have the new jurisdiction to determine whether there is an enthusiastic overpayment; at the same time, it can’t purchase a refund or borrowing away from taxation inside a good continuing delivered below Sec. 6330. Ahmed objected and you can said that the new tax liability wasn’t paid entirely because the 625,000 try only a deposit, not a payment. In the December 2021, the newest Tax Court kept you to definitely a taxpayer’s remittance is a payment whilst taxpayer branded the new remittance as the in initial deposit and you can said he was submitting it pursuant to Rev. Proc.

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