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SEC. 6215. ASSESSMENT OF DEFICIENCY FOUND BY TAX
COURT.
(a) General Rule.--If the taxpayer files a
petition with the Tax Court, the entire amount
redetermined as the deficiency by the decision of the
Tax Court which has become final shall be assessed and
shall be paid upon notice and demand * * *
It cannot be gainsaid that, on its face, our decision herein
did not determine a deficiency for 1987 and that consequently no
deficiency as determined by the Court was assessed. In this
narrow context, it can be argued that the literal language of
section 7481(c)(1) has not been satisfied. We are satisfied that
section 7481(c)(1) should not be given such a narrow
interpretation. This case originally involved a deficiency
notice for 1987, and the stipulated settlement which formed the
basis of our decision reflected a deficiency, albeit that it was
wiped out by the application of the 1989 foreign tax carryback.
Indeed, if there had not been a deficiency for 1987, there could
have been no basis for the assessment of deficiency interest by
respondent. The fact is that a deficiency was the underpinning
for our determination of the amount of the 1987 overpayment.
Under these circumstances, we are satisfied that the requirements
of section 7481(c)(1) have been met.4 Bankamerica Corp. v.
Commissioner, 109 T.C. at 7.
4 We would reach the same conclusion if the current version
(sec. 7481(c)(2)(A)(i)), containing identical language, were
found to be applicable.
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Last modified: May 25, 2011