- 26 -
underlying principle of section 6601(d) should not apply.
Manning v. Seeley Tube & Box Co., 338 U.S. at 566. Neither party
contends that such an exception applies to the facts of this
case.18
The second exception occurs when the later event relates
back to the beginning of the interest period, in which case
interest is calculated from the beginning taking the change into
account. This exception can be illustrated by General Dynamics
Corp. v. United States, 214 Ct. Cl. 369, 562 F.2d 1201 (1977),
which respondent cites in support of the argument that interest
on petitioner's deficiency not be reduced by the amounts of ITC
used between 1979 and 1983. In that case, the taxpayer
18 But see Fluor Corp. v. United States, 35 Fed. Cl. 520
(1996), which holds that sec. 6601(d) does not apply to FTC's and
abated interest on a deficiency eliminated by the carryback of an
FTC. FTC carryovers "shall be deemed taxes paid or accrued" in
the years to which they are carried back or forward. Sec.
904(c). Sec. 6611(g) provides that, notwithstanding the
provisions of sec. 904(c), interest on an overpayment
attributable to an FTC accrues, not from the date "deemed" paid,
but from the date the taxes were actually paid. Significantly,
however, sec. 6601(d) with regard to underpayments lacks any
analogous provision as to the treatment of FTC's. The court in
Fluor interpreted this silence as the "clear legislative
expression" required by Manning v. Seeley Tube & Box Co., 338
U.S. 561, 566 (1950), to suspend the otherwise general "use of
money" principle, and not charge the taxpayer interest on the
deficiency eliminated by the carryback of the FTC. While we
recognize that there is a lack of statutory clarity in the
interplay between secs. 904, 6601, and 6611, we are not
confronted herein with comparable lack of clarity which would
cause us to characterize such lack of clarity as a "clear
legislative expression" for purposes of Manning v. Seeley Tube &
Box Co., supra.
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