BankAmerica Corporation, as successor in interest to Continental Bank Corporation, as successor in interest to Continental Illinois Corporation - Page 25

                                       - 25 -                                         
          payment of the tax as initially shown on the returns.  Certainly,           
          the ITC is a payment of the tax as ultimately determined by this            
          Court.  The fact that the ultimate decision by this Court as to             
          petitioner's tax liability was delayed by the litigation process            
          is irrelevant.                                                              
               It is clear that these rulings reinforce petitioner's                  
          position and the application herein of the general rule of                  
          Manning v. Seeley Tube & Box Co., supra, and section 6601, that             
          "the underlying objective is to determine in a given situation              
          whose money it is and how long the other party had use of it."              
          Rev. Rul. 82-172, 1982-2 C.B. 397.  If respondent had use of                
          petitioner's money, even in the form of a credit, during the                
          relevant period, then respondent must take account of that money            
          in computing interest on any deficiency.  See also Rev. Rul. 85-            
          65, 1985-1 C.B. 366; Tech. Adv. Mem. 83-26-001 (Feb. 25, 1983);             
          Tech. Adv. Mem. 86-24-002 (Dec. 5, 1985); Tech. Adv. Mem. 94-43-            
          007 (May 19, 1994).17                                                       
               There are two exceptions to this general rule.  See G.C.M.             
          39,359 (May 14, 1985).  The first exception occurs in the case              
          where there is "clear legislative expression" indicating that the           



          17  "[A]lthough the petitioners are not entitled to rely                    
          upon unpublished private rulings which were not issued                      
          specifically to them, such rulings do reveal the interpretation             
          put upon the statute by the agency charged with the                         
          responsibility of administering the revenue laws."  Hanover Bank            
          v. Commissioner, 369 U.S. 672, 686 (1962) (fn. refs. omitted).              




Page:  Previous  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  Next

Last modified: May 25, 2011