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deficiencies are eliminated by NOL carrybacks. Section
6601(d)(1), which codifies the principle announced in Manning v.
Seeley Tube & Box Co., 338 U.S. 561 (1950), that a taxpayer is
liable for interest on a deficiency until the deficiency is paid
or otherwise abated, provides that a reduction in tax by reason
of a carryback of an NOL does not affect the computation of
statutory interest due for the period ending with the filing date
for the taxable year in which the NOL arose.
The revenue agent did not apply section 6601(d)(1) in his
computation of the disputed interest. The service center did.
In accordance with the mandate of section 6601(d)(1), the service
center computed petitioners’ interest for 1993 by treating the
carrybacks from 1994 and 1996 as if they had arisen on April 15,
1995 and 1997, respectively. We have reviewed the specifics of
the service center’s computation, and we agree with that
computation. Thus, absent an abatement of any or all of the
disputed interest, petitioners are liable for the amount of
interest determined by the service center.
Respondent argues that petitioners do not qualify for an
abatement of interest under section 6404. We agree. Petitioners
do not qualify for an abatement of interest under section
6404(a)(1), given that this case is one “in respect of an
assessment of * * * [income] tax imposed under subtitle A”.
See sec. 6404(b); see also Melin v. Commissioner, 54 F.3d 432
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