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paid on February 20, 1996, represents the full amount of the
interest due on the tax deficiency of $6,054 computed from April
15, 1987 (the due date of petitioners' 1986 tax return) to March
18, 1991 (the date that petitioners executed a waiver of
restrictions as to assessment and collection in docket No. 11547-
90).
During the hearing on this matter, respondent asserted that
the $5,926.35 amount listed as due in the notice of intent to
levy dated June 10, 1996, represents the balance due from
petitioners for interest computed at the increased rate
prescribed in section 6621(c) after taking into the account the
$3,240.60 that petitioners paid on February 20, 1996. Respondent
argued that such interest was properly assessed and that the
Court lacks jurisdiction to consider the matter in this case.
By order dated August 30, 1996, respondent was directed to
file a memorandum addressing the jurisdictional matters discussed
at the hearing, including whether the Court has the authority to
consider petitioners' liability for interest computed at the
increased rate prescribed in section 6621(c) pursuant to the
Court's authority to determine an overpayment under section
6512(b). Barton v. Commissioner, 97 T.C. 548 (1991). In
addition, petitioner was given the opportunity to file a response
to respondent's objection and/or file a memorandum addressing the
scope of the Court's jurisdiction in this proceeding.
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