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principle for the period in dispute, the later event is the NOL
which arose in 1982, and which was carried back to 1979 which
displaced more 1979 credits back to 1977. Section 6601(d)(1)
provides specifically:
If the amount of any tax * * * is reduced by reason of
a carryback of a net operating 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 * * * arises.
Thus, applying the statute, the interest computation is not
changed by the 1982 NOL before March 15, 1983. Before that date,
interest is computed on the deficiencies as they existed on
January 1, 1980, reflecting the ITC carried back from 1979, as if
the NOL had not occurred.
Interest should then properly be charged based on the
deficiency determined sequentially by succeeding events. That
is, as to the 1977 tax year, for the period January 1, 1980, to
March 14, 1983, interest is to be computed based on the
deficiency amount of $3,777,997, which reflects the carryback
from 1979 of an ITC in the amount of $7,947,605 and an FTC in the
amount of $2,307,548. As to the 1978 tax year, for the period
January 1, 1980, to March 14, 1983, interest is to be computed
based on the deficiency amount of $2,530,339, which reflects the
carryback from 1979 of an ITC in the amount of $444,727.
It should be pointed out that, under this analysis, there is
no danger of petitioner's receiving a double benefit for the 1979
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