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ended January 31, 1995, petitioner had an underpayment with
respect to the tax year ended January 31, 1994, that exceeded
$100,000.
Section 301.6621-3(b)(2)(iii)(B), Proced. & Admin. Regs.,
plainly provides that section 6621(c) does not apply if, after
this Court determines the taxpayer’s liability for a period, the
threshold underpayment for the taxable period does not exceed
$100,000. The Court had no jurisdiction to make a determination
with respect to petitioner’s interest liability because section
7481(c) was triggered only after the decision became final and
respondent assessed the deficiency. Pen Coal Corp. v.
Commissioner, 107 T.C. 249, 254 (1996). The Court did decide
that the deficiency in petitioner’s income tax for the tax year
ended January 31, 1994, was $63,573. Respondent assessed this
amount after the decision became final. Under the regulations,
the Court’s decision and subsequent assessment establish that
there was not a threshold underpayment of tax exceeding $100,000
for purposes of section 6621(c).
Finally, respondent relies on one sentence in the preamble
to the regulations to support his position that the amount of the
underpayment should be determined without consideration of any
NOL carryback. The entire paragraph containing the sentence
provides:
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