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Respondent counters that the $10,000 exemption applies to
the first $10,000 of petitioners’ tax overpayment for each year.
The amount of the additional interest in dispute on this
issue is set forth below:
Post-Dec. 31, 1994, Additional
Interest Accrual Claimed on
Year $10,000 of Tax Overpayment
1979 $2,461
1980 2,597
1981 2,597
1982 2,868
1983 2,857
1985 2,857
We find petitioners’ contention counterintuitive and
contrary to the statutory language. It is noteworthy that in
petitioners’ own memorandum of law filed herein on February 28,
2005 (in the context of a discussion of the first issue discussed
above), petitioners describe the $10,000 exemption as applicable
to the “first” $10,000 of a taxpayer’s tax overpayment.
Respondent emphasizes that each of petitioners’ corporate
Federal income tax returns for 1979 through 1985, when initially
filed with respondent, reflected overpayments of tax in the
millions of dollars, and that the tax overpayments reflected on
those tax returns were paid to petitioners on or about the date
the tax returns were filed via refunds or credits to petitioners’
taxes for other years and long before January 1, 1995.
Accordingly, respondent argues that as of the January 1, 1995,
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