- 6 - The effective date of this change is described in the Uruguay Round Agreements Act, sec. 713(b), 108 Stat. 5002: (b) Effective Date.-- The amendment made by this section shall apply for purposes of determining interest for periods after December 31, 1994. Section 6621(a)(1), effective after December 31, 1994, provides as follows: SEC. 6621. DETERMINATION OF RATE OF INTEREST. (a) General Rule.-- (1) Overpayment rate.--The overpayment rate established under this section shall be the sum of (A) the Federal short-term rate determined under subsection (b), plus (B) 3 percentage points (2 percentage points in the case of a corporation) To the extent that an overpayment of tax by a corporation for any taxable period (as defined in subsection (c)(3), applied by substituting “overpayment” for “underpayment”) exceeds $10,000, subparagraph (B) shall be applied by substituting “0.5 percentage point” for “2 percentage points”. By virtue of its placement in section 6621 and the effective date description, this was a change in the rate of interest. Petitioner maintains the scope of this change was limited to the overpayment itself, not the interest on accrued interest. In addressing this question, we first examine the precedent in the Court of Appeals for the Federal Circuit.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011