- 2 -
Held: The Court has jurisdiction under sec.
7481(c), I.R.C., to redetermine interest because P paid
the deficiency plus interest claimed by R, filed the
motion within 1 year of the date the Court’s decision
became final, and the deficiency and interest were
assessed under sec. 6215, I.R.C.
Held, further: Under sec. 6621(c), I.R.C., and
the regulations promulgated thereunder, a large
corporate underpayment exists if the excess of the
amount of tax imposed by the Internal Revenue Code
(excluding interest, penalties, additional amounts, and
additions to tax) for the taxable period over the
amount of tax paid on or before the return due date
(“the threshold underpayment”) exceeds $100,000.
Because the Code allows a deduction for NOL carrybacks
for purposes of determining the tax imposed for the
taxable year, the tax imposed by the Code for the year
in issue was $63,573.
Held, further: For purposes of sec. 6621(c),
I.R.C., threshold underpayments of tax are generally
determined only when an assessment is made with respect
to a taxable period. Sec. 301.6621-3(b)(2)(iii)(A),
Proced. & Admin. Regs. The interest rate under sec.
6621(c), I.R.C., “hot interest”, does not apply if,
after a Federal court determines a taxpayer’s liability
for a period, the threshold underpayment for that
taxable period does not exceed $100,000. Sec.
301.6621-3(b)(2)(iii)(B), Proced. & Admin. Regs. After
the Court entered its decision, P’s liability for the
tax year in issue was $63,573. Therefore, sec.
6621(c), I.R.C., does not apply.
Ron R. Morgan, for petitioner.
Eric Johnson, for respondent.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011