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effect for the disputed June 1-28, 1982, interest period,23
provides that where the income tax has been reduced by
carrybacks, interest is not to accrue for the period ending with
the last day of the taxable year in which the carried back item
arises. The carryback to 1979, the disallowance of part of which
resulted in the 1979 deficiency, arose in 1981, and thus the
earliest date for interest on the 1979 underpayment is January 1,
1982. This results in petitioners’ underpayment interest
starting date matching the overpayment interest starting date
that they benefited from.
22(...continued)
the taxable year in which the net operating loss or net
capital loss arises.
(2) Certain credit carrybacks.--
(A) In general.--If any credit allowed for
any taxable year is increased by reason of a
credit carryback, such increase shall not affect
the computation of interest under this section for
the period ending with the last day of the taxable
year in which the credit carryback arises * * *.
Sec. 1055(a) of TRA 1997, 111 Stat. 944, redesignated par.
(2) of sec. 6601(d) as par. (3).
23 Sec. 346(c)(2)(A) and (B) of TEFRA 1982, 96 Stat. at
637, 638, substituted the phrase “the filing date for” for the
phrase “the last day of” in each place the latter phrase appeared
in pars. (1) and (2)(A) of sec. 6601(d). The amendments were
effective for interest accruing after Oct. 3, 1982. TEFRA 1982
sec. 346(d)(2), 96 Stat. at 638. Interest on petitioners’
overpayment for 1979 accrued from Jan. 1 through June 16, 1982.
Thus, the amendments do not affect interest on petitioners’
underpayment for 1979.
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