- 58 -
1981, and thus the date of petitioners’ overpayment for 1979 was
deemed to be January 1, 1982.
Consistent with these provisions, respondent accrued
interest on petitioners’ 1979 overpayment from January 1, 1982.
As a result of the foregoing, we conclude that petitioners
are deemed to have had the use of their refund on account of
their carryback(s) to 1979 from January 1, 1982. The 1979 refund
amounted to $10,375.38, consisting of $9,568 plus $807.38
interest. The parties settled the deficiency proceeding in this
Court by agreeing to a deficiency of $8,207.59 for 1979, plus
$1,641.52 addition to tax under section 6659. The 1979
deficiency resulted from disallowance of part of the carryback
from 1981.
As we have noted, section 6601(a) provides the general rule
for interest on underpayments. However, section 6601(d),22 as in
22 Sec. 6601(d) provides, in pertinent part, as follows:
SEC. 6601. INTEREST ON UNDERPAYMENT, NONPAYMENT, OR
EXTENSIONS OF TIME FOR PAYMENT, OF TAX.
* * * * * * *
(d) Income Tax Reduced by Carryback or Adjustment for
Certain Unused Deductions.--
(1) Net operating loss or capital loss
carryback.--If the amount of any tax imposed by
subtitle A is reduced by reason of a carryback of a net
operating loss or net capital loss, such reduction in
tax shall not affect the computation of interest under
this section for the period ending with the last day of
(continued...)
Page: Previous 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 NextLast modified: May 25, 2011