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the overpayment of tax previously determined by this Court with
respect to its taxable year 1987, and the parties have filed
memoranda on the issue raised.
Petitioner also disputes that $10,000 of the overpayment due
on the effective date should receive the regular rate of interest
rather than the GATT rate. Respondent counters that the
refunding of more than $10,000 of the original overpayment on the
due date of petitioner’s return relieves the need for any further
application of the $10,000 threshold in section 6621(a)(1).
Discussion
Interest on overpayments is authorized by section 6611(a) at
the rate established in section 6621. Section 6622(a) requires
that the overpayment interest be compounded daily. The issue
before us concerns whether the GATT rate change in corporate
overpayment interest applies in computing interest on the
interest accrued before the effective date. This change results
in 1.5 percent less interest after December 31, 1994. The
following sentence was added to section 6621(a)(1) by the Uruguay
Round Agreements Act, Pub. L. 103-465, sec. 713(a), 108 Stat.
5001 (1994):
To the extent that an overpayment of tax by a
corporation for any taxable period (as defined in
subsection (c)(3)) exceeds $10,000, subparagraph (B)
shall be applied by substituting “0.5 percentage point”
for “2 percentage points.”
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