Garwood Irrigation Company v. Commissioner

126 T.C. No. 12

UNITED STATES TAX COURT GARWOOD IRRIGATION COMPANY, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 1459-03. Filed May 1, 2006. P, an S corporation, is due an overpayment that exceeds $10,000. R computes that overpayment using the Federal short-term rate plus 0.5 percentage point according to R’s reading of sec. 6621(a)(1), I.R.C. P maintains that it should not be treated as a corporation for purposes of determining the applicable rate because of its S corporation election. P’s position is based upon sec. 6621(c)(3), I.R.C., which is cross-referenced in…