Garwood Irrigation Co. v. Comm'r
United States Tax Court
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 sec. 6621(a)(1), I.R.C.
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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 sec. 6621(a)(1), I.R.C. Held: The lower corporate rate set forth in the flush language of sec. 6621(a)(1), I.R.C., applies to C corporations, and P is entitled to the…
1Opinion of the Court
OPINION
Goeke, Judge:
Petitioner has filed a motion under Rule 2611 seeking a redetermination of overpayment interest. The issue is the appropriate rate of interest on petitioner’s overpayment.
The underlying facts of this case are set out in detail in Garwood Irrigation Co. v. Commissioner, T.C. Memo. 2004— 195, and are incorporated herein by this reference. Petitioner is entitled to recover with interest an overpayment of tax on its built-in gain for the taxable year ending December 31, 1999, pursuant to our Memorandum Opinion. Petitioner elected status as an S corporation effective January 1,…
2Cases cited1 opinion
- Reynolds v. CooperSupreme Court of the United States · 1934
3Cited by4 opinions
- Eaglehawk Carbon, Inc. v. United StatesUnited States Court of Federal Claims · 2015
- Maimonides Medical Center v. United StatesDistrict Court, E.D. New York · 2014
- Garwood Irrigation Co. v. Comm'rUnited States Tax Court · 2006
- Garwood Irrigation Company v. CommissionerUnited States Tax Court · 2006