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Commissioner, 28 T.C. 789 (1957); affd. 259 F.2d 450 (4th Cir.
1958). Majority op. pp. 20-22.
The majority's conclusion does not necessarily follow from
the language in the committee report. First, whether or not the
term “deficiency” has an established meaning for purposes of
statutory construction, I am unconvinced that we ought to ascribe
to the drafters of a conference report the same care that is
supposed in the drafting of statutes. Moreover, there is at
least one instance consistent with the temporary regulations in
which deficiency interest paid by an individual is not personal
interest. Prior to the disallowance of a deduction for personal
interest, courts held that a transferee under section 6901 (tax
liability resulting from transferred assets) could deduct
interest on an income tax deficiency that accrued after the
transfer of the assets to which the tax related. Haden Co. v.
Commissioner, 165 F.2d 588, 591 (5th Cir. 1948), affg. a
Memorandum Opinion of this Court; Merritt v. Commissioner, T.C.
Memo. 1964-164. Although perhaps not technically a deficiency of
the transferee, the deficiency and interest collected from a
transferee are collected pursuant to the usual deficiency
procedures. See sec. 301.6901-1(a)(1)(iii), Proced. & Admin.
Regs. Section 1.163-9T(b)(2) (iii)(C), Temporary Income Tax
Regs., 52 Fed. Reg. 48410 (Dec. 22, 1983), excludes from the
definition of personal interest any interest paid with respect to
a C corporation's underpayment of income tax. I assume that is
because the interest is regarded as investment interest within
the meaning of section 163(h)(2)(C).
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