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address this issue, we explain this Court’s jurisdiction to
redetermine interest.5
I. Jurisdiction
Generally, this Court lacks jurisdiction over issues
involving interest. Bax v. Commissioner, 13 F.3d 54, 56 (2d Cir.
1993); ASA Investerings Pship. v. Commissioner, 118 T.C. 423, 424
(2002); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975).
However, we do have jurisdiction to redetermine interest in
certain limited circumstances. Section 7481(c) provides:
SEC. 7481(c). Jurisdiction Over Interest
Determinations.--
(1) In General.–-Notwithstanding subsection (a),
if, within 1 year after the date the decision of the
Tax Court becomes final under subsection (a) in a case
to which this subsection applies, the taxpayer files a
motion in the Tax Court for a redetermination of the
amount of interest involved, then the Tax Court may
reopen the case solely to determine whether the
taxpayer has made an overpayment of such interest or
the Secretary has made an underpayment of such interest
and the amount thereof.
(2) Cases to which this subsection applies.–- This
subsection shall apply where–-
(A)(i) an assessment has been made by the
Secretary under section 6215 which includes interest
as imposed by this title, and
(ii) the taxpayer has paid the entire
5In Pen Coal Corp. v. Commissioner, 107 T.C. 249, 254
(1996), we held that we lacked jurisdiction to redetermine a
taxpayer’s liability for hot interest in deficiency proceedings.
We explicitly left for another day whether we have jurisdiction
to determine liability for hot interest in a supplemental
proceeding commenced pursuant to sec. 7481(c) and Rule 261. Id.
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