Commissioner of Internal Revenue v. Lundy

Summary

The United States Supreme Court held that the Tax Court lacked jurisdiction to award a refund of taxes paid more than two years before the Commissioner mailed a notice of deficiency when the taxpayer had not filed a return by that date. Interpreting 26 U.S.C. §§ 6511 and 6512(b)(3)(B), the Court concluded that the applicable look-back period was two years rather than three. The Court reversed the Fourth Circuit.

Holdings

1. When the taxpayer has not filed a return before the Commissioner mails the notice of deficiency, the applicable look-back period under § 6512(b)(3)(B) is the default two-year period incorporated from § 6511(b)(2)(B).
2. A refund claim actually filed after the notice of deficiency does not alter the look-back period applicable under § 6512(b)(3)(B).
3. Because Lundy's taxes were deemed paid more than two years before the notice of deficiency, the Tax Court lacked jurisdiction to award him a refund.

Questions Presented

1. Whether 26 U.S.C. § 6512(b)(3)(B) requires a two-year or three-year look-back period when a taxpayer has not filed a return before the Commissioner mails a notice of deficiency.
2. Whether the Tax Court has jurisdiction to award a refund of taxes paid more than two years before the notice of deficiency when the taxpayer filed a return and refund claim only after the notice was mailed.

Disposition

reversed