Commissioner of Internal Revenue v. Lundy

Summary

The Court, in an opinion by Justice O'Connor, held that the two-year look-back period under 26 U. S. C. § 6512(b)(3)(B) applies when a taxpayer has not filed a return before the Commissioner mails a notice of deficiency. Because Lundy's withheld taxes were deemed paid more than two years before that notice, the Tax Court lacked jurisdiction to award a refund, and the Court reversed the Fourth Circuit. A refund claim actually filed after the deficiency notice does not change the applicable look-back period. Justice Thomas, joined by Justice Stevens, dissented, reasoning that the statute permits consideration of actual refund claims and should not deny a refund available in district court. Justice Stevens also wrote separately to emphasize that the majority's interpretation converted a taxpayer-protective provision into a handicap.