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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.
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