Garwood Irrigation Company - Page 3

                                        - 3 -                                         
          6621(a)(1).  In other words, petitioner seeks interest to exceed            
          the Federal short-term rate by 3 percent instead of 0.5 percent.            
               Section 6621(a)(1) provides:                                           
               SEC. 6621.  DETERMINATION OF RATE OF INTEREST.                         
                    (a)  General Rule.--                                              
                         (1)  Overpayment rate.--The overpayment                      
                    rate established under this section shall be                      
                    the sum of–-                                                      
                              (A)  the Federal short-term rate                        
                         determined under subsection (b), plus                        
                              (B)  3 percentage points (2                             
                         percentage points in the case of a                           
                         corporation).                                                
                    To the extent that an overpayment of tax by a                     
                    corporation for any taxable period (as defined in                 
                    subsection (c)(3), applied by substituting                        
                    “overpayment” for “underpayment”) exceeds $10,000,                
                    subparagraph (B) shall be applied by substituting                 
                    “0.5 percentage point” for “2 percentage points”.                 
          The gist of this dispute is the cross-reference to subsection               
          (c)(3).  Subsection (c)(3) provides:                                        
                         (3)  Large corporate underpayment.--For                      
                    purposes of this subsection--                                     
                              (A)  In general.--The term “large                       
                         corporate underpayment” means any                            
                         underpayment of a tax by a C corporation                     
                         for any taxable period if the amount of                      
                         such underpayment for such period                            
                         exceeds $100,000.                                            
                              (B)  Taxable period.--For purposes                      
                         of subparagraph (A), the term “taxable                       
                         period” means–                                               







Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011