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(ii) the taxpayer has paid the
entire amount of the deficiency plus
interest claimed by the Secretary, and
(B) the Tax Court finds under section
6512(b) that the taxpayer has made an
overpayment.
(3) Special rules.--If the Tax Court
determines under this subsection that the taxpayer
has made an overpayment of interest or that the
Secretary has made an underpayment of interest,
then that determination shall be treated under
section 6512(b)(1) as a determination of an
overpayment of tax. An order of the Tax Court
redetermining interest, when entered upon the
records of the court, shall be reviewable in the
same manner as a decision of the Tax Court.[3]
We have jurisdiction to redetermine interest under section
7481(c) where: (1) The entire amount of the deficiency plus the
entire amount claimed by the Commissioner as interest on the
deficiency has been paid; (2) a timely motion to redetermine
interest has been filed; and (3) an assessment has been made by
the Commissioner under section 6215 which includes interest.
See, e.g., Rule 261; Bankamerica Corp. v. Commissioner, 109 T.C.
3Under sec. 7481(a), a decision of the Tax Court becomes
final “after the exhaustion of the possibilities of direct
review”, and, in general, “such finality precludes any subsequent
reconsideration by the tax court”. Kenner v. Commissioner, 387
F.2d 689, 690 (7th Cir. 1968), affg. an unpublished order of this
Court; see also Hanover Ins. Co. v. United States, 880 F.2d 1503,
1506 (1st Cir. 1989); Taylor v. Commissioner, 258 F.2d 89, 92 (2d
Cir. 1958), affg. 27 T.C. 361 (1956). Sec. 7481(c) “specifically
carves out an exception to the rule on the finality of our
decisions”; a prerequisite for invoking that exception is a final
decision of this Court. Bankamerica Corp. v. Commissioner, 109
T.C. 1, 8-9 (1997).
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Last modified: May 25, 2011