Hallmark Cards, Incorporated and Subsidiaries - Page 8

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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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