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threshold. The taxpayer argued since there was no “overpayment”
on January 1, 1995, its overpayment was less than $10,000, and
the regular rate applied under section 6621(a)(1). The Court of
Appeals for the Federal Circuit agreed with the Court of Federal
Claims that the term “overpayment” as used in section 6621(a)(1)
refers to a single, cumulative amount, not to whatever amount of
overpayment may be owed to the taxpayer at a particular point in
time.4 This point is important in the present case regarding the
second issue raised by petitioner’s motion, whether, despite the
prior refund, $10,000 of the overpayment due on the effective
date should receive the regular rate of interest rather than the
GATT rate.
We agree with the analysis of the Court of Appeals for the
Federal Circuit which requires that the threshold is met based on
the cumulative overpayment amount for the taxable year, not the
specific amount remaining at the effective date after credits had
been previously provided. Gen. Elec. Co. v. United States, 384
f.3d at 1308-1309.5 Accordingly, we will deny both aspects of
4The Court of Appeals for the Federal Circuit stated that
“we agree with the trial court’s analysis” that the amount of a
tax overpayment once established is “fixed” and “does not vary as
the government makes refunds or credits.” Gen. Elec. Co. v.
United States, 384 F.3d 1307, 1308-1309 (Fed. Cir. 2004), affg.
in part and remanding in part 56 Fed. Cl. 488 (2003).
5Since there was never any accrued interest on the first
$10,000 of petitioner’s overpayment, we are not faced with the
allocation issue that required a remand by the Court of Appeals
(continued...)
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