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made an overpayment under section 6601(d), which deals with the
correct timing and application of loss and credit carrybacks.14
The parties agree that through the interplay of sections
46(a) and 172(b), the 1979 ITC was displaced as of March 15,
1983, for purposes of determining petitioner's ultimate tax
liability. Respondent, however, contends that this displacement
also means that the ITC may not be taken into account in
14 Sec. 6601(d) provides:
Income Tax Reduced by Carryback or Adjustment for
Certain Unused Deductions.--
(1) Net operating loss or capital loss
carryback.--If the amount of any tax imposed by
subtitle A is reduced by reason of a carryback of a net
operating loss, or net capital loss such reduction in
tax shall not affect the computation of interest under
this section for the period ending with the filing date
for the taxable year in which the net operating loss or
net capital loss arises.
(2) Certain credit carrybacks.--
(A) In general.--If any credit allowed for
any taxable year is increased by reason of a
credit carryback, such increase shall not affect
the computation of interest under this section for
the period ending with the filing date for the
taxable year in which the credit carryback arises,
or, with respect to any portion of a credit
carryback from a taxable year attributable to a
net operating loss carryback, capital loss
carryback, or other credit carryback from a
subsequent taxable year, such increase shall not
affect the computation of interest under this
section for the period ending with the filing date
for such subsequent taxable year.
(B) Credit carryback defined.--For purposes
of this paragraph, the term "credit carryback" has
the meaning given such term by section
6511(d)(4)(C) [referring to the carryback of
business credits, including the ITC, under section
39].
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