- 3 -
Background
Respondent issued a notice of deficiency with respect to
petitioner’s 1987 taxable year. Petitioner filed a petition and
alleged that it had made an overpayment of tax for 1987 in the
amount of $56,900,746. On December 19, 2002, this Court held
that petitioner had made such an overpayment for 1987. State
Farm Mut. Auto. Ins. Co. v. Commissioner, 119 T.C. 342 (2002),
affd. 105 Fed. Appx. 67 (7th Cir. 2004). The Court of Appeals
for the Seventh Circuit affirmed this Court’s decision on June
29, 2004. No petition for certiorari was filed by or on behalf
of petitioner, and the decision of this Court became final on
September 27, 2004. See sec. 7481(a)(2)(A).
On December 15, 2004, respondent issued two checks
aggregating $113,418,286.92 payable to petitioner. The checks
ostensibly covered the amount of petitioner’s overpayment plus
statutory interest thereon. Petitioner was furnished with a copy
of respondent’s computations supporting the total amount of the
checks. In its motion, petitioner takes issue with respondent’s
computation of the overpayment interest payable to petitioner
because respondent computes interest using a reduced rate set
forth in section 6621(a)(1), which is commonly referred to as the
GATT rate after 1994 in compounding the interest that had accrued
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011