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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