- 8 -
early 1995, shortly after the 1994 decision became final,
petitioner contacted respondent regarding the issue of the
inclusion of the 1979 amounts of ITC. Discussions between
petitioner and respondent continued throughout 1995, after which
petitioner timely filed a motion under Rule 261 to redetermine
the interest flowing from the stipulated 1994 computations with
respect to the 1977 and 1978 tax years.
Discussion
For the 1977 tax year, respondent has computed interest on a
deficiency of $11,733,7769 from December 31, 1977, to March 14,
1983. For the 1978 tax year, respondent has computed interest on
a deficiency of $2,975,066 from December 31, 1977, to March 14,
1983. Respondent has not given effect to amounts of 1979 ITC
which were carried back during the period 1980 through 1983
because these amounts of ITC were ultimately displaced and not
used for the years at issue.
Petitioner claims that respondent has overcharged it for
interest by not taking into account the amounts of the 1979 ITC,
with the effect of charging petitioner interest on higher
deficiency amounts. Petitioner's position is that respondent
must, in plain terms, "give it credit" for the 1979 ITC which
9 There is an unexplained difference of $8,174 in this
figure. It is elsewhere listed as $11,725,602. We use the
figure from the stipulated 1994 computations.
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