- 4 -
accrues, without reference to future events, such as loss or
credit carrybacks." BankAmerica Corp. v. Commissioner, 109 T.C.
1, 14 (1997). Section 6601 reflects the "use of money"
principle; "That is, the party who has the use of the money pays
interest up until the event which causes the party no longer to
have use of that money." Id. at 14. "In the absence of a clear
legislative expression to the contrary, the question of who
properly should possess the right of use of the money owed the
Government for the period it is owed must be answered in favor of
the Government." Manning v. Seeley Tube & Box Co., 338 U.S. 561,
566 (1950).
In this latter connection, we are not persuaded by
petitioner's argument that we should not give any consideration
to the time-value-of-money element because that concept "can be
applied only in the presence of a legislative directive to do
so". City of New York v. Commissioner, 103 T.C. 481, 487 (1994),
affd. 70 F.3d 142 (D.C. Cir. 1995). That language was used in
analyzing the applicability of time-value-of-money substantive
provisions of the Code. Interest per se involves the time value
of money, and, if a directive is needed, it can be found in
section 6601(a).
Section 901 allows a taxpayer who so elects a credit,
subject to the limitation of section 904, for the amounts of
certain "taxes paid or accrued during the taxable year to any
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