Estate of Algerine Allen Smith, Deceased, James Allen Smith, Executor - Page 62

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          must be assessed pursuant to section 6501, but interest may be              
          assessed anytime during the collection period of the tax.  This             
          period is usually at least 10 years.  Sec. 6502(a)(1).                      
          Therefore, the statutory scheme provides a distinct and longer              
          assessment statute of limitations for interest, and bifurcates              
          the tax and the interest in this context.  In contrast, the                 
          adopted opinion accelerates interest assessment in the context of           
          overpayment cases, and eliminates any possibility for later                 
          assessment of interest or the correction of a prior interest                
          assessment.  The plain language of the Code would require the               
          Commissioner to determine interest liabilities after the                    
          determination and assessment of tax, including overpayments of              
          tax, and offset those liabilities against the overpayment.                  
               The analysis of the adopted opinion is also inconsistent               
          with the statutory provisions permitting the parties to net                 
          interest obligations where there is an overlapping period when              
          interest and/or tax has been underpaid and overpaid for different           
          tax liabilities.  Sec. 6621(d).  The adopted opinion would                  
          require that all such netting be finalized at the time the                  
          decision document is entered.  In other situations in the Code              
          where subsequent events could alter the impact of a Tax Court               
          decision, the Code has a specific exception that permits                    
          revisiting the results of the decision because of the subsequent            
          events; for example, the statutory treatment of net operating               






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Last modified: May 25, 2011