Tom I. Lincir and Diane C. Lincir - Page 9

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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                
               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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