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(2) the taxpayer has paid the entire amount
of the deficiency plus interest claimed by the
Secretary, and
(3) within 1 year after the date the decision
of the Tax Court becomes final under subsection
(a), the taxpayer files a petition in the Tax
Court for a determination that the amount of
interest claimed by the Secretary exceeds the
amount of interest imposed by this title,
then the Tax Court may reopen the case solely to
determine whether the taxpayer has made an overpayment
of such interest and the amount of any such
overpayment. * * *
See also Rule 261, which implements sec. 7481(c); Note to Rule
261, 93 T.C. 1040-1041; Stauffacher v. Commissioner, 97 T.C. 453,
455-456 (1991). There is no dispute that, as to both tax years,
the three requirements of section 7481(c) have been met.
First, the entire amount of the deficiency plus interest has
been paid. Sec. 7481(c)(2); Melin v. Commissioner, 54 F.3d 432
(7th Cir. 1995), affg. an order of this Court.
Second, a timely petition was filed. Sec. 7481(c)(3).
Third, a deficiency which includes interest has been
assessed in respect of each year. Sec. 7481(c)(1); Asciutto v.
Commissioner, T.C. Memo. 1992-564, affd. 26 F.3d 108 (9th Cir.
1994). In this connection, even though an overpayment was
ultimately found for 1977, there was a deficiency for the period
during which interest accrued, which is the subject of this
dispute. In addition, where we have jurisdiction to determine an
overpayment (as we did in the original deficiency proceeding in
this case), we also have jurisdiction over the interest on that
overpayment. Estate of Baumgardner v. Commissioner, 85 T.C. 445
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