Sunoco, Inc. and Subsidiaries - Page 13

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             interest.  Petitioner contends that the amounts of                       
             overpayment interest respondent computed are too low.                    
                  Respondent concedes that this Court has jurisdiction                
             under section 6512(b) to determine an overpayment based                  
             upon petitioner’s claim that it overpaid underpayment                    
             interest.  Respondent acknowledges that excess underpayment              
             interest which has been assessed and paid by petitioner                  
             “becomes part of the overpayment, i.e., a payment in excess              
             of that which is properly due.”  This concession is based                
             upon Estate of Baumgardner v. Commissioner, 85 T.C. 445                  
             (1985).  Respondent asserts that “the Court, however, does               
             not have jurisdiction to adjudicate petitioner’s claimed                 
             overpayments to the extent they encompass claims for the                 
             payment of overpayment interest on amounts previously                    
             credited or refunded by respondent.”                                     
                  Respondent draws a sharp distinction between                        
             underpayment interest and overpayment interest on the                    
             ground that the former has actually been paid by the                     
             taxpayer and can be part of an overpayment, whereas the                  
             latter has not been paid.  According to respondent, a claim              
             for overpayment interest imposed by section 6611 is merely               
             a claim for an additional amount of interest for which the               
             Government is allegedly liable.  It is not a claim for an                
             amount that has been overpaid and is legally due.                        

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