William F. Urbano and Flota L. Urbano - Page 18

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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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