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underpayments within the meaning of section 6621(c)(3) and that
Pen Holdings is therefore liable for interest computed at the
increased rate prescribed in section 6621(c)(1). The notices of
deficiency also state that interest will be computed on the
additions to tax under section 6651(a)(1) for the taxable years
1982 through 1985, pursuant to section 6601(e)(2).
All references to petitioners are to Pen Coal and Pen
Holdings (and its subsidiaries).
On November 14, 1995, petitioners separately filed petitions
for redetermination with this Court contesting the notices of
deficiency described above. Each of the petitions contains
allegations that respondent erred in her determinations regarding
the imposition of interest under sections 6601(e)(2) and
6621(c)(1). Specifically, petitioners allege that they are not
liable for interest computed at the increased rate prescribed in
section 6621(c) because petitioners do not have a "large
corporate underpayment" for any of the taxable years in issue.
In the alternative, petitioners allege that respondent failed to
allow them an opportunity for administrative review prior to the
issuance of the notices of deficiency and that, as a consequence,
the applicable date for computing increased interest under
section 6621(c) is the date that the notices of deficiency were
mailed.4
4We note that pursuant to sec. 6621(c)(2)(A)(ii), the
"applicable date" is the 30th day after the date on which the
(continued...)
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