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effective date of the GATT amendment, all of petitioners’ then-
remaining outstanding tax overpayments for each of the years in
issue represented tax overpayments by petitioners in excess of
$10,000, no portion of which qualifies for the exemption from the
GATT rate. We agree.
Under section 301.6611-1(b), Proced. & Admin. Regs., the
date of overpayment of a tax is the date of payment of the first
amount which, when added to previous payments, is in excess of
the tax liability (including any interest, addition to tax, or
additional amount). This regulation provides that tax
overpayments are to be refunded beginning with the first payment
that exceeds the tax liability. Accordingly, all of petitioners’
tax overpayments for the years in issue that remained outstanding
after December 31, 1994, and that petitioners eventually received
in 2004 and 2005 constituted overpayments “in excess of $10,000”
and, beginning January 1, 1995, accrued interest at the reduced
GATT rate.
Appropriate orders will be
entered.
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