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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).
Discussion
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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Last modified: May 25, 2011