- 16 - regular interest rate left in section 6621(a)(1)(B) would apply to any December 31, 1994, overpayment interest balance, even though a corporation had a tax overpayment in excess of $10,000. As explained, however, on the basis of the language of section 6621(a)(1), as enacted, we conclude that the GATT rate applies to a corporation’s December 31, 1994, overpayment interest balance for further accrual of interest thereon after December 31, 1994. On brief, petitioners set forth an example involving a corporation’s $100,000 tax overpayment for a year, as of March 15, 1990. In petitioners’ example, on January 1, 1992, respondent refunds to the corporation $50,000 in principal, and on January 1, 1996, respondent refunds the remaining $50,000 principal balance. Petitioners then state: For the 1992-1995 period, the applicable interest rate is applied to $50,000 in remaining principal, plus previously accrued interest. It is irrelevant to that latter computation that the “original” overpayment was $100,000. But if, under the governing statutory language in petitioners’ example, a corporation’s overpayment of tax for a year in excess of $10,000 triggered a reduction in the overpayment interest rate, then the fact that the corporation’s original overpayment was more than $100,000 would be highly relevant. That is the situation presented to us herein.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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