Sunoco, Inc. and Subsidiaries - Page 17

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             4.  In effect, the aggregate amount of each type of                      
             interest cannot be computed without considering all of the               
             transactions that were booked to the account and without                 
             also considering all of the interest, whether overpayment                
             or underpayment, that was previously computed and combined               
             with earlier account balances.                                           
                  As can be seen from the above, in order to compute the              
             aggregate amount of underpayment interest, it is necessary               
             for the Tax Court to review the same transactions, and                   
             interest thereon, as involved in the computation of                      
             overpayment interest.  Thus, it would be impossible for                  
             the Court to exercise overpayment jurisdiction with respect              
             to underpayment interest, unless the Court also had                      
             jurisdiction over overpayment interest.  For the same                    
             reason, it would be impossible for a U.S. District Court                 
             or the Court of Federal Claims to exercise general claims                
             jurisdiction over overpayment interest without considering               
             all of the transactions booked to petitioner’s account,                  
             including transactions that are at issue in the Tax Court                
             case and the amount of underpayment interest charged to the              
                 As noted above, respondent concedes, on the basis of                
             Estate of Baumgardner v. Commissioner, 85 T.C. 445 (1985),               
             that our jurisdiction to determine an overpayment under                  

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Last modified: May 25, 2011