- 10 -
which is a substantial underpayment attributable to tax
motivated transactions.
In sum, section 6621(c)(4) establishes a limited exception to the
general rule that this Court lacks jurisdiction over statutory
interest by providing that, in a proceeding for redetermination
of a deficiency, this Court has jurisdiction to determine the
portion (if any) of such a deficiency that is a substantial
underpayment attributable to a tax-motivated transaction.
Based upon the plain language of section 6621(c)(4), we
conclude that Congress limited the Court's jurisdiction in a
deficiency proceeding to determining the portion of a deficiency
that will be subject to increased interest under section 6621(c).
In this connection, we conclude that Congress did not intend for
the Court to compute or otherwise instruct respondent how to
compute section 6621(c) interest in the context of a deficiency
proceeding.5
Section 6653(a)(2)
Contrary to respondent's argument with respect to section
6621(c), respondent asserts that the Court can reach the question
regarding the effect of section 6621(d) on the computation of the
addition to tax under section 6653(a)(2). Respondent maintains,
5 Although respondent contends that petitioners will be
able to raise the question of the impact of sec. 6621(d) on the
computation of increased interest under sec. 6621(c) pursuant to
a supplemental proceeding brought under sec. 7481(c), the scope
of the Court's jurisdiction in a sec. 7481(c) proceeding is not
properly before the Court at this time, and we express no opinion
on the point.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011