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the rule regarding NOLs in section 6601(d) from the position
advanced by respondent in the context of section 6621(c), and it
highlights the distinction in the statutory scheme between
liability for interest and the proper rates of interest to apply.
Our holding today is consistent with this statutory scheme and
incorporates the mandate of the statute, the guidance set forth
in respondent’s own regulations, and the legislative history
associated with the enactment of the increased interest rate
rules.
III. Conclusion
The statutes and regulations containing the interest
provisions indicate that the purpose of section 6621(c) is to
impose a higher rate of interest on corporate taxpayers if, after
a letter or notice proposing or determining a deficiency
exceeding $100,000 is sent to a taxpayer and payment is not
promptly made, a judicial determination or assessment is made
reflecting an underpayment exceeding $100,000. In the instant
case, the parties agreed and this Court decided that petitioner
had a deficiency of $63,573 for the tax year ended January 31,
15(...continued)
Imposing a $100,000 threshold and allowing corporations to avoid
hot interest by paying the underpayment within 30 days after
notice was provided indicates that Congress was reluctant to
allow arbitrage activities by corporations accruing interest but
did not want to penalize corporations with small underpayments or
which promptly paid their tax liabilities. H. Conf. Rept. 101-
964 (1990), 1991-2 C.B. 560, 591.
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