- 23 -
1994, computed after allowance of the NOL carryback. That amount
was assessed by respondent after this Court’s decision became
final. Although petitioner’s underpayment at the time of the due
date for the 1994 return was $225,753, petitioner was entitled
under the Code to carry back its NOL from the subsequent year,
resulting in a tax of $63,573 for petitioner’s tax year ended
January 31, 1994. The NOL arose more than 3-1/2 years before
respondent sent the 30-day letter containing the proposed
deficiency exceeding $100,000. Applying hot interest in this
situation, where the amount of petitioner’s liability decided by
the Court, the amount assessed by respondent, and the tax imposed
by the Code does not exceed $100,000, is contrary to the
regulations. Accordingly, we hold that section 6621(c) does not
apply under the facts of this case.
An appropriate order will be
entered.
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Last modified: May 25, 2011