Federal National Mortgage Association v. United States

DYK, Circuit Judge.

This is the second time this case has come before this court. This case involves a claim for interest netting under § 6621(d) of the Internal Revenue Code. 26 U.S.C. § 6621(d) (2000). The Federal National Mortgage Association (“FNMA”) asserts that it is entitled to a refund of interest paid by the taxpayer to the Internal Revenue Service (“IRS”) based on the theory that mutual indebtedness of the taxpayer and the IRS for different tax years should be netted against each other with the result that the taxpayer was not liable for interest. The government defends on the ground…