State Farm Mutual Automobile Insurance Company and Subsidiaries - Page 1

                                   126 T.C. No. 2                                     


                               UNITED STATES TAX COURT                                


                       STATE FARM MUTUAL AUTOMOBILE INSURANCE                         
                       COMPANY AND SUBSIDIARIES, Petitioner v.                        
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 1859-01.             Filed January 17, 2006.                


                    P filed a Motion Pursuant to Rule 261 to                          
               Redetermine Interest on Overpayment.  The issue raised                 
               in P’s motion is whether accrued interest on P’s                       
               overpayment as of Dec. 31, 1994, is subject to the                     
               regular rate of interest or the lower rate of interest                 
               provided by sec. 6621(a)(1), I.R.C., beginning on Jan.                 
               1, 1995 (the GATT rate).  R’s position that the GATT                   
               rate applies was previously sustained by the Court of                  
               Federal Claims and the Court of Appeals for the Federal                
               Circuit in Gen. Elec. Co. v. United States, 384 F.3d                   
               1307 (Fed. Cir. 2004), affg. in part and remanding in                  
               part 56 Fed. Cl. 488 (2003).  See also Exxon Mobil                     
               Corp. v. Commissioner, 126 T.C.     (2006).                            
                    The parties also dispute whether any portion of                   
               the overpayment remains subject to the $10,000                         
               threshold as provided in sec. 6621(a)(1), I.R.C.                       
                    Held:  We hold that the GATT rate applies to the                  
               accrued interest owed P as of Dec. 31, 1994.                           





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