- 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 provides
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011