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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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