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scheme since 1949,1 I suggest that one answer to the question is
that there is no flaw in the statutory scheme. The statutory
scheme is intended to permit the offset of overpayments with
interest liabilities even arising in the same statutory year.
The assumed error in the statute is not the result of a
congressional misstep but rather judicial overreach. A
construction of section 6402(a) that restricts interest offsets
is inconsistent with the clear language of section 6512(b)(4),
several other statutory provisions, and the general context of
the Code dealing with Tax Court decisions. The statutory scheme
operates smoothly if interest issues are addressed after
decisions are entered by this Court regarding deficiencies and
overpayments.
The report’s only citation regarding the section 6402(a)
analysis is Belloff v. Commissioner, 996 F.2d 607 (2d Cir. 1993),
affg. T.C. Memo. 1991-350. Reliance on Belloff is misplaced.
1 Sec. 6402(a) was first added to the Internal Revenue Code
of 1939 at sec. 3770(a)(4) by the Tax Administrative Amendments
of 1949, ch. 517, sec. 9(a), Pub. L. 271, and was moved to sec.
6402 by the Internal Revenue Code of 1954, ch. 736, 68 Stat. 730.
It has been amended by the Internal Revenue Service Restructuring
and Reform Act of 1998, Pub. L. 105-206, secs. 3505 and
3711(c)(1), 112 Stat. 771, 781; Balanced Budget Act of 1997, Pub.
L. 105-33, sec. 5514(a)(1), 111 Stat. 620; Personal
Responsibility and Work Opportunity Reconciliation Act of 1996,
Pub. L. 104-193, sec. 110(1)(7)(A), 110 Stat. 2173; Deficit
Reduction Act of 1984, Pub. L. 98-369, sec. 2653(b)(2), 98 Stat.
1155; Omnibus Budget Reconciliation Act of 1981, Pub. L. 97-35,
sec. 2331(c)(1), 95 Stat. 861; and Tax Reform Act of 1976, Pub.
L. 94-455, sec. 1906(b)(13)(A), (K), 90 Stat. 1834.
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