State Farm Mutual Automobile Insurance Company and Subsidiaries - Page 2

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                    Held, further, the entire overpayment of tax                      
               remaining is subject to the GATT rate since an amount                  
               in excess of the $10,000 threshold was refunded to P on                
               the due date of P’s return for the taxable year in                     
               question.                                                              


               Jerome B. Libin, James V. Heffernan, and Mary E. Monahan,              
          for petitioner.                                                             
               Robert Morrison and Jan E. Lamartine, for respondent.                  


                                       OPINION                                        

               GOEKE, Judge: Before us is petitioner’s motion under Rule              
          2611 seeking a higher rate of interest on petitioner’s                      
          overpayment.  The difference between petitioner’s interest                  
          computation method and respondent’s method stems from a                     
          difference of view regarding the effect of a 1994 amendment to              
          section 6621(a)(1), the so-called GATT amendment.  That amendment           
          reduced the rate of overpayment interest applicable to that                 
          portion of a corporate tax overpayment that exceeds $10,000 for             
          purposes of determining interest after December 31, 1994.                   
          Because we hold that the reduced rate of interest effective after           
          December 31, 1994, applies to interest accrued on petitioner’s              
          overpayment as of that date, petitioner’s motion will be denied.            

               1Rule references are to the Tax Court Rules of Practice and            
          Procedure.  Unless otherwise indicated, all section references              
          are to the Internal Revenue Code as amended.                                





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