Arnold S. and Ellen K. Jacobs - Page 8

                                                - 8 -                                                 
                  The terms of section 6211 are expressly incorporated into                           
            section 6653(a).  Section 6653(a)(2) applies "to the portion of                           
            * * *[an] underpayment described in paragraph (1)" of section                             
            6653, which in turn refers to the definition of the term                                  
            "underpayment" provided in subsection (c)(1) of section 6653.                             
            Section 6653(c)(1) provides, in relevant part, that the term                              
            "underpayment" means, "In the case of a tax to which section 6211                         
            * * * is applicable, a deficiency as defined in that section".                            
            Accordingly, an underpayment, or "deficiency", to which section                           
            6653(a)(2) applies is determined by reference to the tax shown on                         
            the return, without regard to any payments on account of                                  
            estimated tax.  The express interplay between section 6211 and                            
            section 6653(a) strongly suggests that in enacting section                                
            6653(a)(2), Congress equated "the last date for payment" with the                         
            due date of the return.4                                                                  
                  Our conclusion here is not novel but is consistent with a                           
            series of cases in which the issue in this case has been                                  
            considered under various circumstances.  See In re Ripley, supra;                         
            Kurt Orban Co. v. Commissioner, 90 T.C. 275 (1988); Skyrms v.                             


            4     The explanation of sec. 6653(a)(2) prepared by the Staff of                         
            the Joint Comm. on Taxation states in part:  "The addition to tax                         
            is 50 percent of the interest for the period beginning on the                             
            last day for payment of the underpayment (i.e., the due                                   
            date of the return without regard to any extension of time for                            
            payment)".  (Emphasis added.)  Staff of the Joint Committee on                            
            Taxation, General Explanation of the Economic Recovery Tax Act of                         
            1981, at 336 (J. Comm. Print 1991) (Pub. L. 97-34, 95 Stat. 172,                          
            342).                                                                                     




Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011