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Because the new statutory language [in section 6621] was
enacted as part of the statute that gave effect to the
agreements reached at the Uruguay Round of Multilateral
Trade Negotiations conducted under the auspices of the
General Agreement on Tariffs and Trade (“GATT”), the lower
corporate overpayment interest rate of 0.5 percent set forth
in the 1994 amendment is referred to as the “GATT rate.”
The higher interest rate on corporate overpayments that
applied to all corporate overpayments prior to the 1994 Act
and [that applies to corporate overpayments of $10,000 and
less] is referred to as the “regular rate.” * * *
We use the same nomenclature herein.
Due to the 1.5-percent differential under section 6621(a)(1)
between the regular rate and the GATT rate, if the higher regular
overpayment interest rate applies to petitioners’ December 31,
1994, overpayment interest balance, there will accrue, after
December 31, 1994, additional interest in favor of petitioners of
approximately $450 million.
Background
The parties have stipulated the facts relevant to the
instant motions.
Petitioners’ corporate Federal income tax returns for 1979
through 1985 were timely filed with respondent. On each of those
tax returns as filed, petitioners reported tax overpayments in
excess of $10,000 and claimed refunds or credit transfers of the
tax overpayments, which respondent allowed and credited in favor
of petitioners.
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