John G. Goettee, Jr. and Marian Goettee - Page 66




                                       - 66 -                                         
          accrued on this item at the section 6621(c) rate.  On opening               
          brief, petitioners contend that the section 6621(c) rate should             
          apply to only $1,137 of this item.  On answering brief,                     
          respondent concedes that the section 6621(c) rate should apply to           
          only $1,137 of the $1,144 additional assessment.                            
               These agreements are to be given effect in the computation             
          under Rule 155.  As to any other questions regarding the section            
          6621(c) rate, we note that the parties’ settlement in                       
          petitioners’ deficiency case includes the determination that:               
               the entire underpayment in income tax for the taxable years            
               1978, 1979, 1981 and 1982 is a substantial underpayment                
               attributable to tax-motivated transactions for purposes of             
               computing the interest payable with respect to such amount             
               pursuant to I.R.C. � 6621(c), formerly I.R.C. � 6621(d);               
          This agreement by the parties in petitioners’ deficiency case was           
          part of the decision we entered disposing of that case.                     
               Apart from the above-noted stipulation and the above-noted             
          concession, we hold for respondent on this issue.                           
                        III.  The $40,000 Offer in Compromise                         
               In May 1996 (supra note 8) petitioners sent to respondent a            
          check in the amount of $40,000 as part of an offer in compromise            
          to settle their interest liability for 1978, 1979, 1981, and                
          1982.  At Fish’s request, on September 4, 1996, petitioners                 
          withdrew their offer in compromise.  At some point, probably in             
          December 1996, possibly in January 1997, respondent refunded to             
          petitioners the $40,000, without interest.                                  






Page:  Previous  53  54  55  56  57  58  59  60  61  62  63  64  65  66  67  68  69  70  71  72  Next

Last modified: May 25, 2011