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where the Commissioner had rejected the taxpayers' request
pursuant to section 6402(a) to offset the tax deficiencies (and
interest) for the years before the Court against the taxpayers'
overpayments for earlier years. Unlike the taxpayers in Winn-
Dixie Stores, Inc. & Subs. v. Commissioner, supra, petitioners
have not paid in full the agreed deficiencies with interest.
Accordingly, petitioners cannot invoke the Court's overpayment
jurisdiction.
Despite the Court's general lack of jurisdiction to
redetermine a taxpayer's liability for statutory interest in a
deficiency proceeding, the Court does have jurisdiction under
section 6621(c) to determine whether a taxpayer is liable for
increased interest. Section 6621(c), originally codified as
section 6621(d) and applicable with respect to interest accruing
after December 31, 1984, provides that interest payable under
section 6601 will be computed at a rate equal to 120 percent of
the normal rate provided under section 6601 on any substantial
underpayment of tax attributable to a tax-motivated transaction.4
Section 6621(c)(4) provided in pertinent part:
(4) Jurisdiction of Tax Court.--In the case of any
proceeding in the Tax Court for a redetermination of a
deficiency, the Tax Court shall also have jurisdiction
to determine the portion (if any) of such deficiency
4 Former sec. 6621(d) was added to the Internal Revenue
Code by the Deficit Reduction Act of 1984, Pub. L. 98-369, sec.
144(a), 98 Stat. 494, 682. Sec. 6621(d) was redesignated sec.
6621(c) by the Tax Reform Act of 1986, Pub. L. 99-514, sec.
1511(c)(1)(A)-(C), 100 Stat. 2085, 2744. Sec. 6621(c) was
repealed by sec. 7721(b) of the Omnibus Budget Reconciliation Act
of 1989, Pub. L. 101-239, 103 Stat. 2106, 2399 effective with
respect to returns the due date for which is after Dec. 31, 1989.
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