- 32 -
petitioner is liable for the section 6659 addition to tax at the
rate of 30 percent of the underpayment of tax attributable to the
disallowed credit for 1981.
Issue 6. Sec. 6621(c) Tax-Motivated Transactions
Respondent determined that interest on the deficiency in
petitioner's 1981 Federal income tax accruing after December 31,
1984, would be calculated under section 6621(c).7 The annual
rate of interest under section 6621(c) equals 120 percent of the
interest payable under section 6601 with respect to any
substantial underpayment attributable to tax-motivated
transactions. An underpayment is substantial if it exceeds
$1,000. Sec. 6621(c)(2).
The underlying facts of this case are substantially the same
as those in Fine v. Commissioner, supra. In addition,
petitioner's arguments on brief with respect to this issue are
verbatim copies of the arguments in the taxpayers' briefs in the
Fine case. For reasons set forth in the Fine opinion, we hold
that respondent's determination as to the applicable interest
rate for deficiencies attributable to tax-motivated transactions
is sustained, and the increased rate of interest applies for
1981.
7
Respondent also determined that interest on the deficiency
in petitioner's 1982 Federal income tax accruing after Dec. 31,
1984, would be calculated under section 6621(c), but respondent
has conceded this issue.
Page: Previous 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 NextLast modified: May 25, 2011