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determining interest liability during the period January 1, 1980,
to March 14, 1983. We disagree.
In Manning v. Seeley Tube & Box Co., 338 U.S. 561 (1950),
the Supreme Court held that the carryback of an NOL to abate a
deficiency does not abate the interest accrued on that deficiency
up until the date the NOL arises. Absent a clear legislative
expression to the contrary, the "use of money" principle will
apply to the accrual of interest on a deficiency. Id. at 566.
The "use of money" principle is reflected in section 6601.
Section 6601(a) provides for interest to be charged on a
deficiency. Section 6601(d) provides that interest is not
affected by a carryback before the filing date of the year in
which the loss or credit arises.15 That is, the party who has
the use of the money pays interest up until the event which
causes the party no longer to have use of that money. In
general, interest liability is determined under section 6601
synchronically, looking at the period during which interest
accrues, without reference to future events, such as loss or
credit carrybacks. This general principle, evident from the
statute itself, is also clearly set forth in respondent's own
rulings.
15 Sec. 6601(d) mentions specifically net capital losses,
NOL's and ITC's, but is silent as to FTC's. See infra note 18.
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