Estate of Smith v. CIR (Davis, J.)
The court reverses a divided en banc panel of the Tax Court. The issue concerns the scope of the Tax Court's jurisdiction to review the Commissioner's decision to credit the amount of an overpayment against a taxpayer's underpayment of interest. The difference of opinion turns on different views on whether the Tax Court's previous overpayment judgment covered only overpayment of a tax or both the overpayment of the tax and an underpayment of interest. The Tax Court believed that its prior judgment holding that the taxpayer had overpayed by a certain amount necessarily disposed of any claim by the Commissioner that the taxpayer had underpayed on back interest. The Fifth Circuit disagrees and adopts the dissent of Tax Court Judge Goeke.