Tom I. Lincir and Diane C. Lincir - Page 5

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          parties to submit an agreed decision or separate computations for             
          entry of decision pursuant to Rule 155.                                       
               Although the parties generally agree with respect to the                 
          terms of the Court's decision, petitioners contend that the                   
          decision should state that the computations of the addition to                
          tax under section 6653(a)(2) and section 6621(c) interest are                 
          subject to (and will be reduced by) the new interest-netting rule             
          contained in section 6621(d).  Respondent counters:  (1) The                  
          question of the applicability of section 6621(d) in respect of                
          the computation of section 6621(c) interest is not ripe for                   
          consideration in this deficiency proceeding; and (2) section                  
          6621(d) does not affect the computation of the addition to tax                
          under section 6653(a)(2).                                                     
               Section 6621(d), enacted as part of the Internal Revenue                 
          Service Restructuring and Reform Act of 1998, Pub. L. 105-206,                
          sec. 3301, 112 Stat. 685, 741 provides:                                       
               To the extent that, for any period, interest is payable                  
               under subchapter A and allowable under subchapter B on                   
               equivalent underpayments and overpayments by the same                    
               taxpayer of tax imposed by this title, the net rate of                   
               interest under this section on such amounts shall be                     
               zero for such period.                                                    
          In sum, section 6621(d) provides that for any period during which             
          a taxpayer is simultaneously liable for an underpayment of tax                
          and entitled to a refund for an overpayment of tax in an                      
          equivalent amount, the net rate of interest on such amount shall              
          be zero.                                                                      

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