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Additions
Section 6621(c)
Respondent seeks increased interest pursuant to section
6621(c). That section provides for an increase in the interest
rate to 120 percent of the statutory rate on underpayments of tax
if a substantial understatement is due to a tax-motivated
transaction. Certain transactions are deemed to be "tax
motivated" by section 6621(c)(3), including any loss disallowed
under section 465(a). Sec. 6621(c)(3)(A)(ii).
Petitioner contends that the notice did not include any
reference to section 6621(c) because such reference was contained
only in the worksheet, and not on the first page of the notice
itself. The worksheet, which was dated several days before the
statutory notice, and was attached to the statutory notice,
explained the deficiencies. However, a notice of deficiency
includes the cover page and all attached pages and documents.
Goldman v. Commissioner, T.C. Memo. 1993-480, affd. 39 F.3d 462
(2d Cir. 1994). Furthermore, the purpose of a notice of
deficiency is to advise the taxpayer of respondent's assertions.
The worksheets attached to the notices of deficiency, each a Form
1902C (Report of Individual Income Tax Examination Changes),
clearly gave petitioner notice that respondent would be seeking
to charge interest "to be computed at 120% of normal rates, Per
IRC Section 6621(c), for Tax Motivated Transactions." The fact
that this line was not printed on the first page of the notices
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