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to pay interest on a deficiency in an amount unreduced by reason
of the carryback of foreign taxes from later years. The
foundation of the Court of Appeals' decision was the general
principle embodied in section 6601(a) that a taxpayer must pay
interest on any deficiency, i.e., what he owes the Government,
and that “Any departures from that principle * * * would require
‘a clear legislative expression to the contrary’”. Fluor Corp. &
Affiliates v. United States, 126 F.3d at 1400 (quoting Manning v.
Seeley Tube & Box Co., 338 U.S. at 566). The Court of Appeals
found that the ("deemed * * * paid * * * in") language of section
904(c) did not meet this standard and that there was no other
sufficient evidence fleshing out the statutory language to
justify a different result. In reaching its conclusion, the
Court of Appeals for the Federal Circuit found unpersuasive the
arguments advanced by petitioner herein. It is to these
arguments that we now turn.
Petitioner insists that the language of section 904(c) is
clear that the foreign tax carryback is deemed paid in the year
to which it is carried back not only for purposes of computing
the amount of the foreign tax credit for that year but for all
purposes, including interest. We disagree. The critical
language of section 904(c)(“deemed * * * paid or accrued in”)
does no more than provide for taking the carryback into account
and a methodology for calculating the amount of the carryback
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