- 6 - The phrase “large corporate overpayments” in the committee report is significant since it echoes the definition of “large corporate underpayment” in subsection (c)(3). This parallel language causes us to find that the reference to “(c)(3)” rather than “(c)(3)(B)” was intentional and tilts the scales of the statutory interpretation to petitioner’s broader reading. It follows that the overpayments subject to the lower rate of overpayment interest set forth in the flush language are those of C corporations, and petitioner is not limited to the 0.5-percent addition to the Federal short-term rate. We have also considered that petitioner was at one time a C corporation and is only now subject to a corporate-level tax liability because of its prior status and the operation of section 1374. However, this does not change our conclusion because in interpreting the application of section 6621(c)(3) to underpayments, section 301.6621-3(b)(3), Proced. & Admin. Regs., provides that after the year of the S corporation election, the S corporation is not to be treated as a C corporation in applying the large corporate underpayment provision of section 6621(c)(3). We find that the overpayment provisions of section 6621(a)(1) should be applied in the same manner. We are left with one final issue. Petitioner seeks the additional 3 percentage points provided for a noncorporate taxpayer in section 6621(a)(1)(B), but that section providesPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011