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This leaves us with the question of when the interest stops
accruing on the portion of the reductions of the deficiencies
attributable to the foreign tax carrybacks. In the Tax Equity
and Fiscal Responsibility Act of 1982, Pub. L. 97-248, sec.
346(c), 96 Stat. 637, Congress changed the effective dates of
carryback credits in all of the carryback interest provisions for
both overpayments and deficiencies from the last day of the
taxable year in which the credit arose to the due date for filing
the return for that year. This change was effective for interest
accruing after October 3, 1982.
In Fluor Corp. & Affiliates v. United States, supra, the
taxpayer used a foreign tax carryback from 1984 to offset a
deficiency in its 1982 tax. The Court of Appeals for the Federal
Circuit held that the accrual of interest on the amount of the
1982 deficiency represented by the carryback ended as of the
close of the taxable year in which the carryback became
available, not on the due date of the taxpayer's return for that
year. Id. at 1406. It selected the close of the taxable year,
because that was the date in the interest provisions as they
existed in 1958, when the foreign tax carryback and carryover
provision (section 904(c)) was enacted. The Court of Appeals
reasoned:
Although Congress in 1982 changed the timing rules
for interest on carrybacks covered by section 6601(d),
* * * , we decline the government's invitation to treat
that legislative change as if it changed the period for
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