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(i) in the case of any
tax imposed by subtitle A, the
taxable year, or
(ii) in the case of any
other tax, the period to which
the underpayment relates.
Petitioner maintains that the term that is defined by
subsection (c)(3) is not “taxable period” as respondent asserts,
but rather “overpayment of tax by a corporation for any taxable
period”. Petitioner makes this argument in order to incorporate
not simply the provisions of subsection (c)(3)(B) of section 6621
into the operation of section 6621(a)(1), but also subsection
(c)(3)(A). Thereby petitioner hopes to limit the meaning of
“corporation” in subsection (a)(1) to C corporations. In other
words, this dispute turns on what is defined for purposes of the
flush language in subsection (a)(1) by the cross-reference to
subsection (c)(3) of section 6621.
Respondent counters that subsection (c)(3)(A) provides a
different threshold than subsection (a)(1), $100,000 rather than
$10,000. The parenthetical in subsection (a)(1) substitutes
“overpayment” for “underpayment”, but it does not say “$10,000”
rather than “$100,000”. The lower threshold is set forth after
the parenthetical. This creates a question as to why Congress
did not more artfully express the incongruity in dollar
thresholds, if petitioner’s argument is assumed to be correct.
Respondent argues that if “taxable period” is the defined term,
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Last modified: May 25, 2011