§6601 — Interest on underpayment, nonpayment, or extensions of time for payment, of tax

12, the legislative history makes clear that it was intended to overrule the decision of the Court of Federal Claims in Fluor Corp.

The Code imposes interest under section 6601, which is not part of subtitle A or B; accordingly, section 7491 does not apply to petitioner’s interest- abatement claim.

Unlike the May-15 RAR, the February-17 RAR did not allow petitioners a prior year minimum tax credit that they had never claimed, resulting in a larger deficiency. 9 Sec. 6603(a) permits taxpayers to “make a cash deposit with the Secretary which may be used by the Secretary to pay any tax imposed under subtitle A or B * * * which has not been assessed at the time of the deposit.” For purposes of sec. 6601 (relating to interest on underpayments), a tax to which a deposit is applied shall be treat

] Additionally, even if all of section 6621 is considered because of the cross-reference in section 6601, as petitioner argues, section 6621(d) does not apply a zero interest rate bu t rather provides that the net rate of interest shall be zero on equivalent underpayments and overpayments .

Section 6601 provides that taxpayers are liable for interest on underpayments oftax that are not paid "on or before the last date prescribed for payment".

We hold that they are not.

The total amount due for 1983 was $364,870.99, consisting of$47,554 oftax, $215,666.93 in statutory interest pursuant to section 6601, and $101,650.06 in tax-motivated transaction interest pursuant to section 6621(c).

Respondent then imposed a section 6651(a)(1) addition to tax of$412.96 for failure to file timely, a section 6651(a)(2) addition to tax of$640.80 for failure to pay timely, and interest accruing of$283.31 pursuant to section 6601, computed as ofSeptember 25, 2013.

[Schussel, 758 F.3d at 92-93; emphasis added.] The First Circuit in Schussel thus held the transferee liable for pre-notice in- terest, computed in accordance with Federal law, in the amount ofapproximately $4 million.

t: March 27, 2006 On March 27, 2006, after the mailing of the deficiency notice, the IRS assessed the $2, 636 (the tax on the increased income attributable to Bang' s share of the research and experimental expenditures disallowed at the partnership level), and the accumulated interest of $21,553.52 pursuant to section 6601 (underpayment interest) and former section 6621(d) (20- percent increase in interest rate for tax-motivated transactions) on the $2, 636 .

In his notice of objection respondent argues that petitioner is liable for two types of interest: (1) Pursuant to section 6601, interest at the section 6621 underpayment rate for the period October 17, 2005 (the date respondent issued the notice of transferee liability), until petitioner's transferee liability is finally paid; and (2) pursuant to Florida law, interest at rates determined under Fla.

underpayment, pursuant to section 6601(a) .

The assessment of tax, including interest pursuant to section 6601(e), is a procedural action that does not require the use of judgment or discretion, much like the issuance of a notice of deficiency .

On January 3, 2000, respondent assessed the income tax reported on the amended return and pursuant to section 6601 assessed $98,417 .37 of accrued interest owed on the untimely paid income tax .

- 20 - Our jurisdiction to redetermine assessments of interest pursuant to section 6601 is limited.

(B) Taxable period.--For purposes of subparagraph (A), the term "taxable period" means-- (i) in the case of any tax (continued...) - 5 - deficiency also state that interest will be computed on the addition to tax under section 6651(a)(1) for the taxable year 1986 pursuant to section 6601(e)(2).3 On August 17, 1995, respondent issued notices of deficiency to Pen Holdings, Inc., and its subsidiaries (Pen Holdings) in which respondent determined the following deficiencies in, and additions to, Pen

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it.is well settled that such jurisdiction generally does not extend to s.tatutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d .Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz ·v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); A

7); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). While this Court has jurisdiction to determine deficiencies in tax pursuant to section 6214, it is well settled that such jurisdiction generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993); Pen Coal Corp. v. Commissioner, 107 T.C. 249, 255 (1996); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Betz v. Commissioner, 90 T.C. 816, 823 - 132 - (1988); Asc

“In general, interest liability is determined under section 6601 synchronically, looking at the period during which interest accrues, without reference to future events, such as loss or credit carrybacks.” BankAmerica Corp.

The refunds issued to the LaRosas were the product of IRS error in computing the liability for statutory interest, 14 which under IRS § 6601, is to be treated the same as the tax upon which it accrues. Thus the erroneous refund is rebate within the meaning of IRC § 6211. But how the Internal Revenue Code treats interest depends on the type of interest and the purpose for which we are considering the question. As a starting point, the statement in section 6601 that interest is treated as tax is

3301(b) also added section 6601(f) to clarify the offset provision of section 6402. Section 6601(f) provides: SEC. 6601(f). Satisfaction by Credits.--If any portion of a tax is satisfied by credit of an overpayment, then no interest shall be imposed.under this section on the portion of the tax so satisfied for any period during which, if the credit had not been made, interest would have been allowable with respect to such overpayment. The preceding sentence shall not apply to the extent that sec

Interest Provisions Section 6601 requires a taxpayer to pay interest on any income taxes remaining unpaid.

In one of these consolidated cases, petitioner seeks review of respondent’s failure to abate interest.8 Because interest is not imposed by subtitle A or B but instead is imposed by section 6601, which is part of subtitle F, section 7491 does not apply to petitioner’s interest-abatement claim.

atives, such as the posting of a bond and the substitution of other assets" ; (5) respondent denied petitioner the right to challenge the underlying tax liability, specifically, the addition to tax under section 6651(a)(3) and accrued interest under section 6601 ;8 (6) respondent failed to balance the need for efficient collection of taxes with the legitimate concern that any collection action be no more intrusive than necessary ; and (7) the Appeals officer was biased.

ng principles when calculating the interest balances” and “in addition to the overpayments referenced above, petitioner seeks overpayments attributable to the calculation of interest utilizing netting principles.” In general, according to the amended petition, for each of the years in issue, the interest respondent charged on “underpayments” under section 6601 was too high, and the interest respondent allowed with respect to “overpayments” under section 6611 was too low.

ng principles when calculating the interest balances” and “in addition to the overpayments referenced above, petitioner seeks overpayments attributable to the calculation of interest utilizing netting principles.” In general, according to the amended petition, for each of the years in issue, the interest respondent charged on “underpayments” under section 6601 was too high, and the interest respondent allowed with respect to “overpayments” under section 6611 was too low.

ars to reduce a taxpayer’s taxable income. Sec. 172(a) allows as a deduction for the taxable year an NOL carryback. If the amount of tax is reduced by reason of an NOL carryback, the reduction in tax does not affect the computation of interest under sec. 6601 for the period ending with the filing date for the taxable year in which the NOL arises. Sec. 6601(d)(1); see also Manning v. Seeley Tube & Box Co., 338 U.S. 561, 570 (1950); Intel Corp. & Consol. Subs. v. Commissioner, 111 T.C. 90, 95 (199

e with respect to any factual issue relevant to ascertaining the liability of the taxpayer for any tax imposed by subtitle A or B. In general, interest is treated as tax. See sec. 6601(e)(1). However, interest on an underpayment of tax is imposed by sec. 6601, which is part of subtitle F. Accordingly, sec. 7491(a) does not apply to the present case. 14 Sec. 6404(e) was amended in 1996 by the Taxpayer Bill of Rights 2, Pub. L. 104-168, sec. 301, 110 Stat. 1452, 1457 (1996), to permit the Commissi

Section 6621(c) Additional Interest Section 6621(c), formerly section 6621(d), provides for additional interest in the form of an increased rate of interest (i.e., 120 percent of the normal rate under section 6601) on an underpayment of tax, but only if such underpayment exceeds $1,000 - 39 - and is attributable to a.tax-motivated transaction.

Section 6621(c) Additional Interest Section 6621(c), formerly section 6621(d), provides for additional interest in the form of an increased rate of interest (i.e., 120 percent of the normal rate under section 6601) on an underpayment of tax, but only if such underpayment exceeds $1,000 - 39 - and is attributable to a tax-motivated transaction.

- 26 - underlying principle of section 6601(d) should not apply. Manning v. Seeley Tube & Box Co., 338 U.S. at 566. Neither party contends that such an exception applies to the facts of this case.18 The second exception occurs when the later event relates back to the beginning of the interest period, in which case interest is calculated from the beginning taking the change into account. This exception can be illustrated by General Dynamics Corp. v. United States, 214 Ct. Cl. 369, 562 F.2d 1201 (

on that deficiency up until the date the NOL arises. Absent a clear legislative expression to the contrary, the “use of money” principle will apply to the accrual of interest on a deficiency. Id. at 566. The “use of money” principle is reflected in section 6601. Section 6601(a) provides for interest to be charged on a deficiency. Section 6601(d) provides that interest is not affected by a carryback before the filing date of the year in which the loss or credit arises. That is, the party who has

udge v. Commissioner, 88 T.C. 1175, 1180-1181 (1987); Naftel v. Commissioner, 85 T.C. 527, 529 (1985). It is well settled that this Court’s jurisdiction to redetermine a deficiency in tax generally does not extend to statutory interest imposed under section 6601. See Bax v. Commissioner, 13 F.3d 54, 56-57 (2d Cir. 1993), affg. an Order of this Court; LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Asciutto v. Commissioner, T.C. Memo. 1992-564, affd. 26 F.3d 108 (9th Cir. 1994). In p

Further, the Court of Appeals concluded that section 6901(a) authorized the imposition of interest on the obligation of the transferee under section 6601 as if it were a tax liability and that the limitation imposed under section 6324(a)(2) applied only to the underlying tax obligation, not on the independent interest obligation imposed on the taxpayer under section 6324(a)(2) by way of sections 6901(a) and 6601(a).

Dynamics Corp. v. United States, 562 F.2d 1201 (Ct. Cl. 1977). Assuming arguendo that there was a delinquent gift tax liability for 2003, the estate contends that the stipulation ofsettlement included an agreement that this liability would not bear interest. This contention is equally unpersuasive. There is nothing in the stipul

eral law . pursuant to section 6601(a)10 regardless of whether the value of the transferred, assets exceeds the deficiency for which the transferee is liable . Id . at 959 .. Thus, interest after the notice of liability is issued is determined under section 6601 . We must .determine only whether Federal or State law governs the running of interest for the period before the notice of liability is issued. "Sec . 6601(a)-provides : If any amount of tax imposed by this title (whether required to be

eral law . pursuant to section 6601(a)10 regardless of whether the value of the transferred, assets exceeds the deficiency for which the transferee is liable . Id . at 959 .. Thus, interest after the notice of liability is issued is determined under section 6601 . We must .determine only whether Federal or State law governs the running of interest for the period before the notice of liability is issued. "Sec . 6601(a)-provides : If any amount of tax imposed by this title (whether required to be

On January 3, 2000, respondent assessed the income tax reported on the amended return and pursuant to section 6601 assessed $98,417.37 of accrued interest owed on the untimely paid income tax.

tioners' personal exemptions, determined that petitioners owed additional income tax of $39,988, proposed a 10-percent early withdrawal penalty pursuant to section 72(t) of $8,571 and an accuracy-related penalty pursuant to section 6662(a) of $7,998, and determined that petitioners were liable for interest accrued through May 22, 2002, pursuant to section 6601, of $3,735 .

As to petitioner's interest liability, section 6601 provides for the imposition of interest on unpaid tax liabilities, and section 6601(g) provides for the assessment and collection of that interest.

ars to reduce a taxpayer’s taxable income. Sec. 172(a) allows as a deduction for the taxable year an NOL carryback. If the amount of tax is reduced by reason of an NOL carryback, the reduction in tax does not affect the computation of interest under sec. 6601 for the period ending with the filing date for the taxable year in which the NOL arises. Sec. 6601(d)(1); see also Manning v. Seeley Tube & Box Co., 338 U.S. 561, 570 (1950); Intel Corp. & Consol. Subs. v. Commissioner, 111 T.C. 90, 95 (199

For 1984 and 1985, if any part of a tax underpayment is due to fraud, the addition to tax for fraud under section 6653(b)(1) is 50 percent of the total underpayment of tax, and the addition to tax under section 6653(b)(2) is 50 percent of the interest payable under section 6601, but only with respect to that part of the underpayment that is due to fraud.

igence under section 6653(a)(1) and (2) for the taxable 2(...continued) refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax- motivated transactions. 4 years 1984 and 1985, and under section 6653(a)(1)(A) and (B) for the taxable year 1986. We hold that she is not. (8) Whether petitioner Sands is lia

igence under section 6653(a)(1) and (2) for the taxable 2(...continued) refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax- motivated transactions. 4 years 1984 and 1985, and under section 6653(a)(1)(A) and (B) for the taxable year 1986. We hold that she is not. (8) Whether petitioner Sands is lia

(2) Additional amount for portion attributable to fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is (continued...) - 32 - this burden for a year, respondent must prove two elements, as follows: (1) That petitioner has an underpayment of tax for that year, and (2) that some part of that u

For 1984 and 1985, if any part of a tax underpayment is due to fraud, the addition to tax for fraud under section 6653(b)(1) is 50 percent of the total underpayment of tax, and the addition to tax under section 6653(b)(2) is 50 percent of the interest payable under section 6601, but only with respect to that part of the underpayment that is due to fraud.

(2) Additional amount for portion attributable to fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and (B) for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the da

summarily. First, petitioner contends that the "additions to tax under section 66017 [were] not * * * claimed in the notices of deficiency for 1986 through 1991." We reviewed the notices and each did in fact make a determination for interest under section 6601. Second, petitioner's allegation that respondent in some way violated section 72148 is a criminal matter over which this Court has no jurisdiction. See Boger v. Commissioner, T.C. Memo. 1981-629; Rice v. Commissioner, T.C. Memo. 1978-334.

1388-470, effective for purposes of determining interest for periods after December 31, 1990, sets forth the rules for determining the amount of interest payable under section 6601 on large corporate underpayments of tax.

s due after Dec. 31, 1989, OBRA 89, sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant case. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - section 6659 for underpayment of tax attributable to valuation overstatement; and (6) whether petitioner is liable for increased interest under s

axes: Increased Interest Additions to Tax Year Deficiency Sec. 6621(c) Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 1978 $10,022 1 --- --- $3,006.60 1979 382 --- --- --- 114.60 1981 11,737 1 $586.85 2 3,521.10 1120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 250 percent of the interest payable with respect to the portion of the underpayment attributable to negligence. The deficiencies in the Sorey case, doc

axes: Increased Interest Additions to Tax Year Deficiency Sec. 6621(c) Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 1978 $10,022 1 --- --- $3,006.60 1979 382 --- --- --- 114.60 1981 11,737 1 $586.85 2 3,521.10 1120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 250 percent of the interest payable with respect to the portion of the underpayment attributable to negligence. The deficiencies in the Sorey case, doc

Section 6601 provides for the accrual of interest on any underpayment of tax from the date the tax becomes due, until the date the tax is paid. Section 6404(e)(1) provides: (e) Assessments of Interest Attributable to Errors and Delays by Internal Revenue Service.-- (1) In general.-- In the case of any assessment of interest on-- (A) any deficiency

return. On September 26, 2016, respondent assessed (1) the reported income tax liability, (2) an addition to tax for failure to timely pay, see § 6651(a)(2), (3) an addition to tax for failure to pay estimated tax, see § 6654, and (4) interest, see § 6601. Respondent recorded issuing a notice and demand for payment letter for the Glasers’ 2015 taxable year on the same date.3 The Glasers timely filed their joint federal income tax return for 2021 on October 17, 2022, after receiving an extension

7 (A) interest paid or accrued on indebtedness properly allocable to a trade or business (other than the trade or business of performing services as an employee), (B) any investment interest (within the meaning of subsection (d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest (within the meaning of paragraph (3)), (E) any interest payable under section 6601 on any unpaid por

See § 4975(a) and (b).4 The Third Circuit held that section 4975 imposes “a tax” for purposes of section 6601, which charges interest “[i]f any amount of tax imposed by this title” is not timely paid.

axpayer 3, resulting in additional tax due of $16,811. 12 The only adjustments to income shown on the Form 4549 were for the same adjustments reported on taxpayer 1’s Forms 1040X, plus accuracy-related penalties under section 6662 and interest under section 6601. 7 [*7] Forms 1120 for 2006–09 or on taxpayer 3’s Forms 1120 and 1120X for 2007–09. On October 20, 2014, RA Martin received a cashier’s check from the target taxpayers for the additional amounts owed as reflected on taxpayer 1’s Forms 10

17 The Beltons’ literal account transcripts reflect that the Beltons made certain small payments on their debt after the date of the section 7345 certifications. Additionally, the amounts they owed for 2006 and 2007 were written off after the certifications because of the expiration of the limitations period. The literal account tran

We understand this contention as a challenge to the accuracy-related penalties under section 6662 and statutory interest imposed under section 6601 with respect to their outstanding deficiencies.

- 28 - review in this Court for all years at issue, and he in fact did seek review for tax years 2003 through 2007. This Court sustained the Commissioner’s determinations for those years. For all other years, Dr. Rowen’s right to such review in this Court has lapsed. There is nothing in the record to prove that Dr. Rowen has entered int

ition to include the assertion that they cannot sufficiently oppose the Commissioner’s factual assertions without further discovery. B. Interest on Federal income tax liability Interest on a Federal income tax underpayment arises automatically under section 6601. Under section 6601(a) the interest “shall be paid for the period from * * * [“the last date prescribed for payment”] to the date paid.” Important to this case, section 6601(e)(1) provides that interest arising under section 6601 is “tre

Memo LEXIS 129, at *9-*10; see also Baral v.

sections 6320 and 6330. Offiler v. Commissioner, 114 T.C. 492, 498 (2000). Furthermore, respondent filed a certificate ofrelease ofFederal tax lien. In deficiency proceedings, such as this case, ourjurisdiction does not extend to interest imposed by section 6601. Lincir v. Commissioner, 115 T.C. 293, 298 (2000), M, 32 F. App'x 278 (9th Cir. 2002). However, in limited circumstances this Court does havejurisdiction to redetermine interest. Pursuant to section 7481(c)(1) and (2) we havejurisdiction

t set forth specific facts showing that there is a genuine dispute for trial. Rule 121(d); see Celotex Corp. v. Catrett, 477 U.S. 317, 324 (1986). A. Abatement ofInterest Framework Interest on a Federal income tax liability arises automaticallyunder section 6601. We generally lackjurisdiction over issues concerning interest computations. Urbano v. Commissioner, 122 T.C. 384, 390 (2004); see also Mgl James, Inc. v. Commissioner, 121 T.C. 147, 151 (2003). Congress authorized the Commissioner to ab

t he had the financial ability to pay his assessed tax liabilities in full. For all these reasons, we conclude that SOl did not abuse her discretion in rejecting his OIC.8 2. Abatement ofInterest Interest on tax liabilities arises automaticallyunder section 6601. Section 6404(e)(1)(B) authorizes the IRS to abate assessed interest on "any payment * * * to the extent that any unreasonable error or delay in such payment is attributable to * * * [an IRS] officer or employee being erroneous or dilato

The IRS will continue to add interest, as Section 6601 ofthe Internal Revenue Code requires, on the amount the IRS determines is due after default.

In the years preceding the enact- ment ofsection 6201(a)(4), we are aware ofno instance in which the Government sought to use those title 18 provisions to argue for adding, to the amount ofresti- tution the sentencing court had ordered, interest under section 6601 or additions to tax under section 6651.

In the years preceding the enact- ment ofsection 6201(a)(4), we are aware ofno instance in which the Government sought to use those title 18 provisions to argue for adding, to the amount ofresti- tution the sentencing court had ordered, interest under section 6601 or additions to tax under section 6651.

Interest on tax liabilities arises automaticallyunder section 6601, and the SO determined that the interest on petitioner's 1995-1997 tax liabilities had been - 8 - [*8] properly assessed.

The Court generally lacksjurisdiction "over issues concerning interest computed under section 6601." Urbano v.

numerating all tax consequences was unnecessary because the closing agreement is "for all Federal income tax purposes". In addition to not referencing sec. 965, the dissent notes that the closing agreement did not reference sec. I1 (tax imposed) and sec. 6601 (interest on underpayment). See dissenting op. pp. 50-51. However, those provisions are still applicable to the closing agreement, but specific references were not necessary. The closing agreement created the accounts receivable under Rev.

erson v. Sims, 281 F.2d 577, 580 (5th Cir. 1960); Estate ofStein v. Commissioner, 37 T.C. 945, 959 (1962); Shockley v. Commissioner, T.C. Memo. 2016-8, at *7. Postnotice interest accruing during the postnotice interest period is computed pursuant to sec. 6601. See Estate ofStein v. Commissioner, 37 T.C. at 959; Shockley v. Commissioner, at *7. Sec. 6621 establishes the rate ofinterest for postnotice interest for the postnotice interest period. See Shockley v. Commissioner, at *7. -238- [*238] am

l 29, 2013, petitioner's counsel sent a letter to the IRS Brookhaven Centralized Offer in Compromise Unit and submitted Form 656-L, Offer in Compromise, and Form 843, Claim for Refund and Request for Abatement, requesting abatement ofinterest under section 6601. Subsequently, on November 8, 2013, petitionerwithdrew the offer-in-compromise. On December 12, 2013, IRS Appeals Settlement Officer Stephan R. Harding (SO Harding) told petitioner's counsel he would abate the addition to tax under sectio

erson v. Sims, 281 F.2d 577, 580 (5th Cir. 1960); Estate ofStein v. Commissioner, 37 T.C. 945, 959 (1962); Shockley v. Commissioner, T.C. Memo. 2016-8, at *7. Postnotice interest accruing during the postnotice interest period is computed pursuant to sec. 6601. See Estate ofStein v. Commissioner, 37 T.C. at 959; Shockley v. Commissioner, at *7. Sec. 6621 establishes the rate ofinterest for postnotice interest for the postnotice interest period. See Shockley v. Commissioner, at *7. -238- [*238] am

erson v. Sims, 281 F.2d 577, 580 (5th Cir. 1960); Estate ofStein v. Commissioner, 37 T.C. 945, 959 (1962); Shockley v. Commissioner, T.C. Memo. 2016-8, at *7. Postnotice interest accruing during the postnotice interest period is computed pursuant to sec. 6601. See Estate ofStein v. Commissioner, 37 T.C. at 959; Shockley v. Commissioner, at *7. Sec. 6621 establishes the rate ofinterest for postnotice interest for the postnotice interest period. See Shockley v. Commissioner, at *7. -238- [*238] am

d 577, 580 (5th Cir. 1960) (citing as authority section 294 ofthe Internal Revenue Code of 1939, predecessor ofsections 6601, 6651(c), and 6654(a)); Estate ofStein v. Commissioner, 37 T.C. at 959. Interest accruing in this period is determined under section 6601. Estate ofStein v. Commissioner, 37 T.C. at 959 (referencing the same section in the Internal Revenue Code of 1954); see also section 6621 (establishing the interest rate). Determining the earlier prenotice interest period depends upon t

Petitioner's Underlying Tax Liabilities Petitioner contends that he is not liable for the section 6651(a)(2) addition to tax with respect to his 2007 tax year or statutory interest under section 6601 with respect to his 2006 and 2007 tax years.

Again, ifthe plain language ofthe ruling was not clear enough, the ruling appears in the Cumulative Bulletin under a section headed "SECTION 163.- - INTEREST" with a subheading "(Also Section 6601: 301.6601.1)", which is a reference to the Code section for underpayment interest.

The stipulation of facts provides that "The income tax return was false as to a material matter, as follows", and petitioner contends that this language establishes that the return was false with respect to only one item (i.e., the unreported income relating to the rebate checks).

-: 41 - On the record before us, we find that petitioner has carried her burden of establishing that she would suffer economic hard- ship if relief under section E0 5 (f) were not granted with respect to the portion of the underpayment for 2004 that is attributable to Mr. Smith. With respect to the know]edge factor, petitioner must esta

Respondent then assessed the $85,7252 shown due on the returns and $3,886 of statutory interest under section 6601 .3 Respondent also assessed $4,727 of late payment and late filing additions to tax (additions) for the years at issue .

payment) applied and, because of the application of section 6211(b) (1), 'The amount of penalty was increased in stages over the years from 50 percent of the underpayment to 75 percent of the underpayment and 50 percent of the interest payable under sec. 6601. - 17 - estimated payments and withholding credits did not enter into the calculation. Sections 6663 and 6664 replaced repealed section 6653. For convenience, we again set out the pertinent portions of sections 6663 and 6664. Section 6663(a

ch year at issue over three years after the filing deadline . each return, petitioner reported a tax due but failed to pay the reported tax . Respondent then assessed the $124,8252 tax due shown on the returns and $38,677 of statutory interest under section 6601 . Respondent also assessed $28,828 of late payment additions and $25,945 of late filing additions for both years at issue . 3 Petitioner failed to pay the assessed amounts . Respondent thereafter sent petitioner a Notice of .Federal Tax

ricken and replaced by a new sec. 6662. Id. sec. 7721(a), 103 Stat. 2395. The amount of penalty was increased in stages over the years from 50 percent of the underpayment to 75 percent of the underpayment and 50 percent of the interest payable under sec. 6601. Petitioner cites several cases in support of the proposition that the term “underpayment” is equivalent to the term “deficiency” under current law. See Estate of Capehart v. Commissioner, 125 T.C. 211, 224 (2005); Downing v. Commissioner,

9 - We generally lack jurisdiction to determine tfie appropriateness of .-the .interest,computed under section 6601 , except in two circumstances-.

Fraud -- (1) In general.--If any part of any underpayment (as defined in subsection (c))of tax required tó be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment.

turn a check in the amount of $1,073,654, reportedly as payment of the following items: Items Amount Sec. 1291 tax $562,633 Sec. 1291 interest 498,386 Failure to pay estimated income tax addition to tax 44 Failure to pay timely addition to tax 5,620 Sec. 6601 interest 7,564 Credit for the elderly (593) Total 1,073,654 Decedent’s final income tax return reported the $562,633 as section 1291 tax and included that amount in the $562,040 reported as decedent’s total tax for 2000 (i.e., the $562,633

6601 interest . 7,564 Credit for the elderly . (593) Total. 1,073,654 Decedent’s final income tax return reported the $562,633 as section 1291 tax and included that amount in the $562,040 reported as decedent’s total tax for 2000 (i.e., the $562,633 less the $593 credit for the elderly). Decedent reported the section 1291 interest of $498,386

The increased rate of interest under section 6621(c) is 120 percent of the statutory rate imposed on underpayments under section 6601 if the underpayment exceeds $1,000 and is attributable to a tax-motivated transaction (as defined in section 6621 (c)(3)) .

ntial application of section 6653(a)(2), petitioners assert that respondent has incorrectly computed the underpayment of tax which is attributable to negligence and subject to the addition to tax, based upon 50 percent of the interest payable under section 6601. Petitioners argue to reduce the deficiencies in 1981 and 1982 computed under section 6211(a)(1), despite respondent’s repayment of the $189,769 with interest. Petitioners rely upon the definition of deficiency in section 6211 and argue t

For 1986, section 6653(b)(1)(A) imposes an addition to tax equal to 75 percent of the tax underpayment attributable to fraud, and section 6653(b)(1)(B) imposes a separate addition to tax, equal to 50 percent of the interest payable under section 6601, on the portion of an underpayment attributable to fraud.

Thus, the total liability for taxable year 1982 continues to (cid:16)04in2crease with the passage of time (1982 total liability). Respondent maintains, and petitioner does not dispute, that, because petitioner and Mr. Korchak were still married at the time of the trial, it is appropriate to consider the income, the assets, and the liabil

Interest(IRC§6601)-computedto 02/22/2006 0.00 4,379.35 19,399.31 d.

shown on a return is due to fraud, there shall be added to the tax an amount equal to the sum of-- (A) 75 percent of the portion of the underpayment which is attributable to fraud, and (B) an amount equal to 50 percent of the interest payable under section 6601 with respect to such portion for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax or, if earlier, the

was repealed by OBRA sec. 7721(b), 103 Stat. 2399, effective with respect to returns due after Dec. 31, 1989, OBRA sec. 7721(d). The repeal does not affect this case. 5In this opinion, the term “additional interest” means the interest prescribed by sec. 6601, with the rate of interest increasing to 120 percent of the underpayment rate under sec. 6621(c). White v. Commissioner, 95 T.C. 209, 214 (1990). - 3 - 6621(c); and (4) if we have jurisdiction to decide a taxpayer’s liability for additional

It provides that, if any part of any underpayment is due to negligence or disregard of rules or regulations, an addition equal to the sum of 5 percent of the underpayment and, for 1987, an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment attributable to negligence for the period from the underpayment due date to the assessment date (or if earlier, the tax payment date) shall be added to the tax.

Accrual of Interest on the 1989 Income Tax Liability Because petitioner and Apostle did not report the correct income tax liability on the original joint return, interest accrued under section 6601 on the full amount of the 1989 income tax liability from April 15, 1990, the due date of the original joint return, until June 12, 1992, the date on which petitioner paid $36,171 of the 1989 income tax liability (1990-1992 interest liability).

It provides that, if any part of any underpayment is due to negligence or disregard of rules or regulations, an addition equal to the sum of 5 percent of the underpayment and, for 1987, an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment attributable to negligence for the period from the underpayment due date to the assessment date (or if earlier, the tax payment date) shall be added to the tax.

We note that, while this Court has jurisdiction to review the applicability of the section 6621(c) increased rate of interest, discussed above, we generally lack jurisdiction to redetermine the amount of interest due on a deficiency under section 6601 prior to entry of a decision redetermining the deficiency.

We note that, while this Court has jurisdiction to review the applicability of the section 6621(c) increased rate of interest, discussed above, we generally lack jurisdiction to redetermine the amount of interest due on a deficiency under section 6601 prior to entry of a decision redetermining the deficiency.

(2) Additional amount for portion attributable to fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and (B) for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the da

ection 6653(b) provides: (1) In general.--If any part of any underpayment * * * of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to the sum of– (A) 75 percent of the portion of the underpayment which is attributable to fraud, and (B) an amount equal to 50 percent of the interest payable under section 6601 with respect to such portion * * *.

provided: If the Secretary extends for any period the time for filing income tax returns under section 6081 and the time for paying income tax with respect to such returns under section 6161 for any taxpayer located in a Presidentially declared disaster area, the Secretary shall abate for such period the assessment of any interest prescribed under section 6601 on such income tax.

provided: If the Secretary extends for any period the time for filing income tax returns under section 6081 and the time for paying income tax with respect to such returns under section 6161 for any taxpayer located in a Presidentially declared disaster area, the Secretary shall abate for such period the assessment of any interest prescribed under section 6601 on such income tax.

NION Under section 6653(a), (a)(1), and (a)(2), an addition to tax is imposed on the portion of an underpayment of tax attributable to a taxpayer’s negligence equal to 5 percent of the underpayment plus 50 percent of the interest due thereon under section 6601. Negligence is generally described as the failure to use due care or to do what a reasonable and ordinarily prudent person would do under the circumstances. Allen v. Commissioner, 925 F.2d 348, 353 (9th Cir. 1991), affg. 92 T.C. 1 (1989);

n (d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econo

Even if we were to assume, arguendo, that petitioner’s delay in paying the 1988 liability was partly attributable to her marital difficulties, this circumstance would not tend to show that the delay was attributable to ministerial error or delay by the IRS, as required for her to establish entitlement to relief pursuant to section 6404(e

evenue Code.” Estate of Stein v. Commissioner, 37 T.C. 945, 961 (1962); Lowy v. Commissioner, 35 T.C. 393, 397 (1960). Accordingly, petitioners’ liability with respect to interest on Metro’s tax liability is determined pursuant to Federal law (i.e., section 6601). Petitioners contend, without citing any authority, that the BFI stock they received should be valued at a 40-percent discount because the tax-free characterization of Metro’s merger with BFIM would have been destroyed had they sold the

evenue Code.” Estate of Stein v. Commissioner, 37 T.C. 945, 961 (1962); Lowy v. Commissioner, 35 T.C. 393, 397 (1960). Accordingly, petitioners’ liability with respect to interest on Metro’s tax liability is determined pursuant to Federal law (i.e., section 6601). Petitioners contend, without citing any authority, that the BFI stock they received should be valued at a 40-percent discount because the tax-free characterization of Metro’s merger with BFIM would have been destroyed had they sold the

n (d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econo

Section 6653 provides, in relevant part, that if any part of any underpayment is due to negligence, there shall be added to the tax (1) an amount equal to 5 percent of the underpayment and (2) an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence and for the period beginning on the last date prescribed by law for payment of such underpayment and ending on the date of the assessment of the tax.

Section 6653(a)(1)(B) imposed an addition to tax in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment.which was attributable to negligence.

Section 6653 provides, in relevant part, that if any part of any underpayment is due to negligence, there shall be added to the tax (1) an amount equal to 5 percent of the underpayment and (2) an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence and for the period beginning on the last date prescribed by law for payment of such underpayment and ending on the date of the assessment of the tax.

ner's husband's 1986 Federal income tax liability as follows: With Respect to Husband: Additions to Tax Year Deficiency Sec. 6653(b)(1)(10 Sec. 6653(b)(1)(B) Sec. 6661 1986 $1,367,888 $1,023,699 ¹ . $341,233 ¹50 percent of the interest payable under sec. 6601. With Respect to Petitioner: Addition to Tax Year Deficiency Sec. 6661 1986 $1,367,888 $341,233 Petitioner and her husband, Reinhard Mueller (sometimes, husband), made a joint return of income for 1986 (the 1986 return). The principal adjus

For 1983, 1984, and 1985, section 6653(b)(1) imposes an addition to tax equal to 50 percent of any underpayment in tax if any part of the underpayment was due to fraud, and section 6653(b)(2) imposes a separate addition - 101 - to tax equal to 50 percent of the interest payable under section 6601, determined on the portion of the underpayment attributable to fraud.

income taxes as follows: Joseph DelVecchio: Additions to Tax Sec. Sec. Sec. Sec. Year Deficiency 6653 (b) (1) (A) 6653 (b) (1) 6653 (b) (1) (B) 6661 1987 $29,400 $22,050 -- ¹ $7,350 1988 16,699 -- $12,524 -- 4,175 ¹50% of the interest payable under sec. 6601. Carol DelVecchio: Additions to Tax Sec. Sec. Sec. Sec. Year Deficiency 6653(a)(1)(A) 6653(a)(1) (B) 6653(a)(1) 6661 1987 $29,400 $1,470 ¹ -- $7,350 1988 16,699 -- -- $835 4,175 ¹50% of the interest payable under sec. 6601. Following the tr

For 1983, 1984, and 1985, section 6653(b)(1) imposes an addition to tax equal to 50 percent of any underpayment in tax if any part of the underpayment was due to fraud, and section 6653(b)(2) imposes a separate addition - 101 - to tax equal to 50 percent of the interest payable under section 6601, determined on the portion of the underpayment attributable to fraud.

7 $8,797 $8,797 1990 25,515 4,697 6,593 3,296 5,103 5,103 1991 41,240 7,435 16,238 8,119 8,248 8,248 1992 222,282 10,792 88,913 44,456 44,456 44,456 1 Respondent determined that interest is to be computed at 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax- motivated transactions. 2 Respondent determined that an additional amount is to be computed equal to 50 percent of the interest attributable to the entire 1987 underpayment p

supplements Lincir v. Commissioner, T.C. Memo. 1999-98. t SERVED jfP 2 7 2000 - 2 - 6621(d), I.R.C., on the computation of thp sec. 6621(c), I.R.C., interest. Held, further, Because R has not computed the amount of statutory ,interest payable under sec. 6601, I.R.C., the question of the impact of sec. 6621(d), I.R.C., if any, on the computation of the addition to tax under sec. 6653(a)(2), I.R.C., is not ripe for consideration. Michael D. Savage, for petitioners. Gary D. Kallevang, for responden

Petitioner requests in the alternative that the Court waive any (1) interest imposed by section 6601 on the assessed 1990 tax deficiency during the period February 14, 1995, through December 31, 1998, and (2) penalties assessed by respondent with respect to the assessed 1990 tax deficiency.

Section 6653(b)(2) Under section 6653(b)(2), a separate addition to tax (equal to 50 percent of the interest payable under section 6601) is determined with respect to "the portion" of the underpayment attributable to fraud.

on a return is due to fraud, there shall be added to the tax an amount equal to the sum of-– (A) 75 percent of the portion of the underpayment which is attributable to fraud, and - 6 - (B) an amount equal to 50 percent of the interest payable under section 6601 with respect to such portion for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax or, if earlier, the

one 1989 4,776 87 None 1990 8,319 1,258 None 1991 8,243 836 None 1992 6,619 9 None To reflect the foregoing, Decision will be entered under Rule 155. Respondent determined that interest is to be computed at 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. Respondent determined that an additional amount is to be computed equal to 50 percent of the interest attributable to the entire 1987 underpayment pursu

Additionally, for 1982, section 6653(b)(2) provides for an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

ec. 6653(b)(1) provides for an addition to tax in the amount of 50 percent of the underpayment if any part of the underpayment is due to fraud. Sec. 6653(b)(2) provides for an addition to tax in the amount of 50 percent of the interest payable under sec. 6601 with respect to the portion of the underpayment which is attributable to fraud. - 16 - that some portion of the underpayment is due to fraud. See sec. 7454(a); Rule 142(b); Laurins v. Commissioner, 889 F.2d 910, 913 (9th Cir. 1989), affg. N

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

For example, in a case involving 2 taxable years, the taxpayer's liability for statutory interest under section 6601 was computed under the modified 7-percent settlement offer by treating the taxpayer's tax liability for the earlier of the 2 years as having been incurred on the due date for payment of tax for the later year.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(a)(2) imposes an additional amount "equal to 50 percent of the interest payable under section 6601 * * * with respect to the portion of the underpayment described in paragraph (1) which is attributable to * * * negligence".

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

For example, in a case involving 2 taxable years, the taxpayer's liability for statutory interest under section 6601 was computed under the modified 7-percent settlement offer by treating the taxpayer's tax liability for the earlier of the 2 years as having been incurred on the due date for payment of tax for the later year.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653 (b) (2) provf.des for an addition to tax (in addition to the addition un er section 6653 (b) (1) ) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable t fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

petitioner is not entitled to an IRA deduction in an amount exceeding $271.5 We now turn to some of petitioner's various other concerns. Petitioner has asked us to consider whether respondent properly determined the amount of interest imposed under section 6601. We are unable to address this issue. This Court is a court of limited jurisdiction, and we may exercise jurisdiction only to the extent expressly authorized by statute. See Judge v. Commissioner, 88 T.C. 1175, 1180-1181 (1987); Naftel v

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

For example, in a case involving 2 taxable years, the taxpayer's liability for statutory interest under section 6601 was computed under the modified 7-percent settlement offer by treating the taxpayer's tax liability for the earlier of the 2 years as having been incurred on the due date for payment of tax for the later year.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

For example, in a case involving 2 taxable years, the taxpayer's liability for statutory interest under section 6601 was computed under the modified 7-percent settlement offer by treating the taxpayer's tax liability for the earlier of the 2 years as having been incurred on the due date for payment of tax for the later year.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

For example, in a case involving 2 taxable years, the taxpayer's liability for statutory interest under section 6601 was computed under the modified 7-percent settlement offer by treating the taxpayer's tax liability for the earlier of the 2 years as having been incurred on the due date for payment of tax for the later year.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(2) provides for an addition to tax (in addition to the addition under section 6653(b)(1)) in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is attributable to fraud.

Section 6653(b)(1)(B), as in effect for 1987, imposes a further addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to fraud.

6601(e)(1) (stating that “any reference in this title”, except subchapter B of chapter 63 (i.e., sections 6211-6216) to “any tax” also refers to interest imposed by section 6601 on such tax).

Respondent also moves to dismiss for lack of jurisdiction and to strike allegations in the petition contesting statutory interest. The Court's jurisdiction to redetermine a tax deficiency generally does not extend to statutory interest imposed under section 6601. See 508 Clinton St. Corp. v. Commissioner, 89 T.C. 352, 354-355 (1987); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Asciutto v. Commissioner, T.C. Memo. 1992-564, affd. 26 F.3d 108 (9th Cir. 1994). Outside of the Court'

Section 6653(a)(1)(B) provides for an addition to tax in the amount of 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence.

Section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations.

- 17 - Fraud and Other Additions to Tax For 1984 and 1985, if any portion of a tax underpayment is attributable to fraud, the addition to tax for fraud under section 6653(b)(1) equals 50 percent of the total underpayment of tax, and increased interest under section 6653(b)(2) equals 50 percent of interest payable under section 6601 but only with respect to that portion of the underpayment that is attributable to fraud.

Section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations.

t determined the following deficiency in and additions to petitioner's income tax for 1983: - 2 - Additions to Tax Deficiency Sec. 6653(b)(1) Sec. 6653(b)(2) Sec. 6661(a) $1,581,128 $790,564 1 $395,282 1Plus 50 percent of the interest payable under sec. 6601 with respect to the portion of the underpayment which is attributable to fraud. Unless stated otherwise, all section references are to the Internal Revenue Code as in effect for 1983. After concessions, the issues remaining for decision are:

Section 6653(b)(1)(B) also provides for an additional addition to tax of 50 percent of the interest payable under section 6601 for that part of the underpayment that is due to fraud.

shown on a return is due to fraud, there shall be added to the tax an amount equal to the sum of-- (A) 75 percent of the portion of the underpayment which is attributable to fraud, and (B) an amount equal to 50 percent of the interest payable under section 6601 with respect to such portion for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the date of the assessment of the tax or, if earlier, the

For 1985, if any part of the underpayment is due to fraud, section 6653(b)(1) imposes an addition to tax equal to 50 percent of the underpayment, and section 6653(b)(2) imposes a separate addition to tax, equal to 50 percent of the interest payable under section 6601, determined on the portion of the underpayment attributable to fraud.

(d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest (within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econo

(2) Additional amount for portion attributable to fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and (B) for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the da

iciencies in and additions to tax with regard to petitioner as follows: - 2 - Docket No. 980-95 Additions to Tax Year Deficiency Sec. 6653(b)(1)(A) Sec. 6653(b)(1)(B) Sec. 6661 1987 $172,310 $128,693 * $43,078 * 50 percent of interest payable under sec. 6601 with respect to portion of underpayment attributable to fraud. Docket No. 26812-95 Additions to Tax Year Deficiency Sec. 6651(a)(1) Sec. 6653(a)(1) Sec.6653(b)(1) Sec. 6661 1988 $653,048 $15,233 $3,047 $444,087 $163,262 Unless otherwise indi

(d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest (within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econo

Section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations.

Section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations.

Section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations.

iciencies in and additions to tax with regard to petitioner as follows: - 2 - Docket No. 980-95 Additions to Tax Year Deficiency Sec. 6653(b)(1)(A) Sec. 6653(b)(1)(B) Sec. 6661 1987 $172,310 $128,693 * $43,078 * 50 percent of interest payable under sec. 6601 with respect to portion of underpayment attributable to fraud. Docket No. 26812-95 Additions to Tax Year Deficiency Sec. 6651(a)(1) Sec. 6653(a)(1) Sec.6653(b)(1) Sec. 6661 1988 $653,048 $15,233 $3,047 $444,087 $163,262 Unless otherwise indi

Section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence or intentional disregard of rules or regulations.

(C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, - 6 - (D) any qualified residence interest (within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econom

ficiency 6653(a) 6653(a)(1) 6653(a)(2) 6659 6621(c) 1978 $39,133 $1,956.65 -- -- -- * 1979 34,365 1,718.25 -- -- -- * 1980 94,226 4,711.30 -- -- -- * 1981 34,181 -- $1,709.05 ** $1,910.70 * * Amount equal to 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. ** Amount equal to 50 percent of the interest due on $34,181, the portion of the underpayment attributable to negligence. This case was submitted fully

For 1984, if any part of a tax underpayment is due to fraud, the addition to tax for fraud under section 6653(b)(1) is 50 percent of the total underpayment of tax, and the addition to tax under section 6653(b)(2) is 50 percent of the interest payable under section 6601, but only with respect to that part of the underpayment that is due to fraud.

(d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest (within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econo

Section 6653(b)(1) imposed an addition to tax in the amount of 50 percent of the underpayment if any part of the underpayment is due to fraud, and section 6653(b)(2) imposed an addition to tax in the amount of 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment which is attributable to fraud.

Respondent also moves to dismiss for lack of jurisdiction and to strike allegations in the petition contesting statutory interest. The Court’s jurisdiction to redetermine a tax deficiency generally does not extend to statutory interest imposed under section 6601. See 508 Clinton St. Corp. v. Commissioner, 89 T.C. 352, 354-355 (1987); LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Asciutto v. Commissioner, T.C. Memo. 1992-564, affd. 26 F.3d 108 (9th Cir. 1994). Outside of the Court’

. 2400. The repeal does not affect the instant case. For simplicity, we refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - The parties filed a Stipulation of Settled Issues concerning the adjustments relating to petitioners' participation in the Plastics Recycling Pro

For the 1986 and 1987 tax years, if any part of an underpayment is due to negligence, there shall be added to the tax an amount equal to the sum of 5 percent of the underpayment and an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence.

any underpayment * * * is due to negligence or disregard of rules or regulations, there shall be added to the tax an amount equal to the sum of-- (A) 5 percent of the underpayment, and (B) an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence for the period beginning on the last date prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on

ion, the term "personal interest" means any interest allowable as a deduction under this chapter other than-- (A) interest paid or accrued on indebtedness properly allocable to a trade or business (other than the trade or business of performing services as an employee), (B) any investment interest (within the meaning of subsection (d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence i

s to Tax Sec. Sec. Sec. Year Deficiency 6653(b)(1) 6653(b)(2) 6661 1981 $92,643 $46,322 None None 1982 89,411 44,706 1 None 1985 230,360 115,180 1 $57,590 1 The addition to tax under I.R.C. sec. 6653(b)(2) is 50 percent of the interest payable under I.R.C. sec. 6601 with respect to the portion of the underpayment which is attributable to fraud, which is the entire deficiency for each of the taxable years 1982 and 1985. Additions to Tax Sec. Sec. Year Deficiency 6653(b)(1)(A) 6653(b)(1)(B) 1986 $

y 6653(a) 6653(a)(1) 6653(a)(2) 6659 6621(c) 1979 $878 $44 n/a n/a -0- n/a 1980 2,919 146 n/a n/a $846 2 1981 1,392 n/a $70 1 418 2 1 50 percent of the interest due on the deficiency. 2 120 percent of the interest accruing after Dec. 31, 1984, under sec. 6601 with respect to any substantial underpayment attributable to tax- motivated transactions. The underlying issue in this case arose from investment tax credit carrybacks claimed by petitioner and Mr. Zavitz related to their investment in the

For 1987, section 6653(b)(1)(A) imposes an addition to tax equal to 75 percent of the portion of the underpayment attributable to fraud, and section 6653(b)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to that portion.

any underpayment * * * is due to negligence or disregard of rules or regulations, there shall be added to the tax an amount equal to the sum of-- (A) 5 percent of the underpayment, and (B) an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment which is attributable to negligence for the period beginning on the last date prescribed by law for payment of such underpayment * * * and ending on the date of the assessment of the tax *

For 1986 and 1987, section 6653(a)(1)(A) imposes an addition to tax of 5 percent of the amount of any underpayment due to negligence or disregard of rules or regulations, and section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence.

from their participation in the Plastics Recycling Program, with the exception of petitioners' potential liability for additions to the tax for valuation 1(...continued) accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 2 The deficiencies for 1978, 1979, and 1980 derived from disallowed credit carrybacks from 1981. - 4 - overstatements under I.R.C. §6659 and for neglig

For 1986 and 1987, section 6653(a)(1)(A) imposes an addition to tax of 5 percent of the amount of any underpayment due to negligence or disregard of rules or regulations, and section 6653(a)(1)(B) provides for an addition of 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence.

Under section 6653(a)(1)(B), an addition to tax (equal to 50 percent of the interest payable under section 6601) is imposed with respect to the portion of the underpayment attributable to negligence.

For 1983, 1984, and 1985, if any part of a tax underpayment is due to fraud, the addition to tax under section 6653(b)(1) is 50 percent of the underpayment, and the addition to tax under section 6653(b)(2) is 50 percent of the interest payable under section 6601 for that part of the underpayment that is due to fraud.

rs' joint Federal income tax for the years in issue: - 2 - Additions to Tax Sec. Sec. Sec. Year Deficiency 6653(a)(1)(A) 6653(a)(1)(B) 6653(a)(1) 1986 $1,575.26 $78.86 1 -- 1988 6,649.00 -- -- $332.45 1 Plus 50 percent of the interest payable under sec. 6601 with respect to the portion of the underpayment which is attributable to negligence. All section references are to the Internal Revenue Code as in effect during the years in issue. Respondent also determined the following deficiencies in, ad

Section 6653(a)(1)(B) imposed an addition to tax in an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment which was attributable to negligence.

ed petition. Rule 13(a), (c); Monge v. Commissioner, 93 T.C. 22, 27 (1989); Normac, Inc. v. Commissioner, 90 T.C. 142, 147 (1988). The Court's jurisdiction to redetermine a tax deficiency generally does not extend to statutory interest imposed under section 6601. See LTV Corp. v. Commissioner, 64 T.C. 589, 597 (1975); see also Asciutto v. Commissioner, T.C. Memo. 1992-564, affd. 26 F.3d 108 (9th Cir. 1994). One exception to the general rule stated above arises under section 7481(c) which confers

0. The repeal does not affect the instant case. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - 2. The underpayment in income tax attributable to petitioner's participation in Resource Reclamation Associates is a substantial underpayment att

Under this section, if any part of an underpayment of tax is due to negligence or intentional disregard of the rules or regulations, there shall be added to the tax, in addition to the 5-percent addition provided by section 6653(a)(1), an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of such underpayment attributable to negligence.

Tax Sec. Sec. Sec. Year Deficiency 6653(a)(1)(A) 6653(a)(1)(B) 6653(a)(1) 1987 $10,571.00 $528.55 1 -- 1988 15,270.51 -- -- $763.53 1989 12,412.00 -- -- -- 1990 6,107.00 -- -- -- 1991 15,681.00 -- -- -- 1Fifty percent of the interest computed under sec. 6601 with respect to the portion of the underpayment which is attributable to negligence. Unless otherwise stated, all section references are to the Internal Revenue Code as in effect during the years in issue. After concessions, the issues remai

Tax Sec. Sec. Sec. Year Deficiency 6653(a)(1)(A) 6653(a)(1)(B) 6653(a)(1) 1987 $10,571.00 $528.55 1 -- 1988 15,270.51 -- -- $763.53 1989 12,412.00 -- -- -- 1990 6,107.00 -- -- -- 1991 15,681.00 -- -- -- 1Fifty percent of the interest computed under sec. 6601 with respect to the portion of the underpayment which is attributable to negligence. Unless otherwise stated, all section references are to the Internal Revenue Code as in effect during the years in issue. After concessions, the issues remai

ec. Sec. Sec. Sec. Year Deficiency 6651(a)(1) 6653(a)(1)(A) 6653(a)(1)(B) 6653(a)(1) 6654 1987 $62,203 $15,551 $3,110 1 --- $3,359 1988 28,777 7,194 --- --- $1,439 1,843 1989 78,170 19,543 --- --- --- 5,287 1 50 percent of the interest payable under sec. 6601 on the portion of the underpayment attributable to negligence or disregard of rules or regulations. The underlying matter herein was resolved pursuant to a stipulation of settled issues filed with the Court on June 20, 1997. In the settleme

Section 6653(a)(2) provides for an addition to tax equal to 50 percent of the interest payable under section 6601 on that portion of the underpayment in tax attributable to such negligence or intentional disregard.

8,803 3 1984 --- --- 41,156 3 1985 --- --- 57,564 3 1Addition is 50 percent of the underpayment as defined in sec. 6653(c). 2Addition is 50 percent of the underpayment as defined in sec. 6653(c). 3Addition is 50 percent of the interest payable under sec. 6601 with respect to such portion of the underpayment attributable to fraud. As alternatives to additions to tax for fraud under section 6653(b),1 respondent determined that petitioners were liable for additions to tax under sections 6651(a)(1)

64 2 200 1988 2,427 1,820 --- --- --- 153 1 In the alternative to the additions to tax for fraud, respondent determined additions to tax under secs. 6651(a)(1) and 6653(a)(1) and (2) for all years at issue. 2 50 percent of the interest payable under sec. 6601 for the portion of the underpayment due to fraud. Respondent moves for summary judgment as to: (1) The deficiencies and the additions to tax under section 6654 for failure to pay estimated tax; and (2) the additions to tax for fraud under t

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment that is due to negligence.

s to Tax Sec. Sec. Sec. Year Deficiency 6653(b)(1) 6653(b)(2) 6661 1981 $92,643 $46,322 None None 1982 89,411 44,706 1 None 1985 230,360 115,180 1 $57,590 1 The addition to tax under I.R.C. sec. 6653(b)(2) is 50 percent of the interest payable under I.R.C. sec. 6601 with respect to the portion of the underpayment which is attributable to fraud, which is the entire deficiency for each of the taxable years 1982 and 1985. Additions to Tax Sec. Sec. Year Deficiency 6653(b)(1)(A) 6653(b)(1)(B) 1986 $

For 1985, section 6653(b)(1) imposes an addition to tax equal to 50 percent of any underpayment in tax if any part of the underpayment is due to fraud; section 6653(b)(2) imposes a separate addition to tax, equal to 50 percent of the interest payable under section 6601, determined on the portion of the underpayment attributable to fraud.

(d)), (C) any interest which is taken into account under section 469 in computing income or loss from a passive activity of the taxpayer, (D) any qualified residence interest (within the meaning of paragraph (3)), and (E) any interest payable under section 6601 on any unpaid portion of the tax imposed by section 2001 for the period during which an extension of time for payment of such tax is in effect under section 6163 or 6166 or under section 6166A (as in effect before its repeal by the Econo

For the taxable years 1983 through 1985, if any portion of an underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment, as well as an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to fraud.

0. The repeal does not affect the instant case. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - Respondent complied with this Order, but petitioner failed to respond. On November 23, 1993, respondent filed her Motion for Partial Summary Judg

t Year Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 Sec. 6621(c) Sec. 6661 1981 $24,350.02 $1,217.50 1 $6,945.76 2 --- 1982 24,586 1,229.30 1 5,310.60 2 $1,721 1 50% of the interest due on the deficiency. 2 120% of the interest payable under sec. 6601. In the stipulation, petitioners agreed to be bound by the test case entitled Pinto v. Commissioner, docket No. 17407-86. This Court entered a decision in the Pinto case on January 18, 1995. The stipulation provides: With respect to all adj

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

1 Additions to Tax and Increased Interest Year Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 Sec. 6621(c) 1981 $13,173 $659 1 $3,952 2 1982 10,580 529 1 3,174 2 1 50% of the interest due on the deficiency. 2 120% of the interest payable under sec. 6601. In the stipulation, petitioners agreed to be bound by the test case entitled Pinto v. Commissioner, docket No. 17407-86. This Court entered a decision in the Pinto case on January 18, 1995. The stipulation provides: With respect to all adj

ncome tax as follows:2 Additions to Tax and Increased Interest Year Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 Sec. 6621(c) 1982 $9,951 $497.55 1 $2,179.27 2 1 50% of the interest due on the deficiency. 2 120% of the interest payable under sec. 6601. By notice of deficiency dated June 8, 1987, respondent determined deficiencies in, additions to, and increased interest on petitioners Albert and Louise Churik's Federal income tax as follows: 1Although petitioners received separate defici

The repeal does not affect the instant cases. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - $1,202, and under section 6653(a)(2) in amounts equal to 50 percent of the interest due on the respective underpayments attributable to negligence

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

n 6621(c) turns on elements that are specific to an individual partner, it follows that such interest is correctly characterized as an affected item that cannot be 4 Sec. 6621(c) provides for interest at 120 percent of the normal rate provided under sec. 6601. Sec. 6621(c) is applicable solely with respect to interest accruing after Dec. 31, 1984, even though the transaction was entered into prior to the date of enactment of sec. 6621(c). Solowiejczyk v. Commissioner, 85 T.C. 552 (1985), affd. w

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 350 percent of the interest payable with respect to the portion of the underpayment attributable to negligence. 4In the alternative to the addition to

For the year 1981 the negligence addition to tax includes two components: (1) 5 percent of the underpayment (section 6653(a)(1)) and (2) 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence (section 6653(a)(2)).

2400. The repeal does not affect the instant case. For convenience, we refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 3 - FINDINGS OF FACT Some of the facts are stipulated and are so found. We incorporate by reference the stipulation of facts and attached exhibits. P

Under section 6653(a)(1)(B), an addition to tax (equal to 50 percent of the interest payable under section 6601) is imposed with respect to the portion of the underpayment attributable to negligence.

and Increased Interest Year Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 Sec. 6621(c) Sec. 6661 1981 $ 6,435 $322 1 $1,844 2 --- 1982 11,245 562 1 2,885 2 $407 1 50% of the interest due on the deficiency. 2 120% of the interest payable under sec. 6601. In the stipulation, petitioner agreed to be bound by the test case entitled Pinto v. Commissioner, docket No. 17407-86. This Court entered a decision in the Pinto case on January 18, 1995. The stipulation provides: With respect to all adju

2 120 percent of the interest payable under section 6601 with respect to any substantial underpayment attributable to tax-motivated transactions.

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 350 percent of the interest payable with respect to the portion of the underpayment attributable to negligence. 4In the alternative to the addition to

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 4The notice of deficiency in docket No. 16922-90 lists the additions to tax for negligence for taxable years 1979 and 1980 under sec. 6653(a)(1). For t

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 4The notice of deficiency in docket No. 16922-90 lists the additions to tax for negligence for taxable years 1979 and 1980 under sec. 6653(a)(1). For t

iciency 6653(a) 6653(a)(1) 6653(a)(2) 6659 6621(c) 1978 $39,133 $1,956.65 -- -- -- * 1979 34,365 1,718.25 -- -- -- * 1980 94,226 4,711.30 -- -- -- * 1981 34,181 -- $1,709.05 ** $1,910.70 * * Amount equal to 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. ** Amount equal to 50 percent of the interest due on $34,181 on the portion of the underpayment attributable to negligence. This case was submitted full

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 4The notice of deficiency in docket No. 16922-90 lists the additions to tax for negligence for taxable years 1979 and 1980 under sec. 6653(a)(1). For t

eturn is due to fraud, there shall be added to the tax an amount equal to the sum of * * * (A) 75 percent of the portion of the underpayment which is attributable to fraud * * * . Both provisions require that 50 percent of the interest payable under sec. 6601 is due with respect to that portion of the understatement attributable to fraud. Secs. 6653(b)(2)(A), 6653(b)(2). 2 Plus 50 percent of the interest due on $58,899 3 Plus 50 percent of the interest due on $82,667. 4 Plus 50 percent of the in

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

and Increased Interest Year Deficiency Sec. 6653(a)(1) Sec. 6653(a)(2) Sec. 6659 Sec. 6621(c) 1981 $10,316.29 $ 515.82 1 $1,956.70 2 1982 7,663.00 383.15 1 2,298.90 2 1 50% of the interest due on the deficiency. 2 120% of the interest payable under sec. 6601. In the stipulation, petitioners agreed to be bound by the test case entitled Pinto v. Commissioner, docket No. 17407-86. This Court entered a decision in the Pinto case on January 18, 1995. The stipulation provides: With respect to all adj

Section 6653(a)(1)(B), for returns due in 1987 and 1988, imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

nded answer) and petitioners have the burden of proof with regard to 1980. Section 6621(c) provides for an interest rate on substantial underpayments attributable to tax-motivated transactions that is 120 percent of the underpayment rate provided in section 6601. See Stanley Works & Subs. v. Commissioner, 87 T.C. 389, 413-415 (1986). Section 6621(c) applies to interest accrued after December 31, 1984, even though the transaction was entered into prior to the date of enactment of section 6621(c).

0. The repeal does not affect the instant case. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 4 Corresponding dollar figures were not set out by respondent for these asserted additions to tax. - 4 - petition, respondent asserted that interest on

(2) Additional amount for portion attributable to fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and (B) for the period beginning on the last day prescribed by law for payment of such underpayment (continued...) - 31 - 6211, 6653(c)(1); sec.

For the year 1981 the negligence addition to tax includes two components: (1) 5 percent of the underpayment (section 6653(a)(1)) and (2) 50 percent of the interest payable under section 6601 on the portion of the underpayment attributable to negligence (section 6653(a)(2)).

Section 6653(a)(2) provides for an addition to tax in an amount equal to 50 percent of the interest payable under section 6601 with respect to that portion of an underpayment attributable to negligence or intentional disregard of rules and regulations.

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 350 percent of the interest payable with respect to the portion of the underpayment attributable to negligence. 4In the alternative to the addition to

The increased interest equals 120 percent of the interest payable under section 6601 with respect to any substantial underpayment attributable to a tax- motivated transaction.

Section 6653(b)(2) Under section 6653(b)(2), an addition to tax equal to 50 percent of the interest payable under section 6601 is imposed on the portion of the underpayment attributable to fraud.

eturn is due to fraud, there shall be added to the tax an amount equal to the sum of * * * (A) 75 percent of the portion of the underpayment which is attributable to fraud * * * . Both provisions require that 50 percent of the interest payable under sec. 6601 is due with respect to that portion of the understatement attributable to fraud. Secs. 6653(b)(2)(A), 6653(b)(2). 2 Plus 50 percent of the interest due on $58,899 3 Plus 50 percent of the interest due on $82,667. 4 Plus 50 percent of the in

l, briefing, and opinion and will hereinafter be referred to as the instant case. - 2 - Additions to Tax Year Deficiency Sec. 6653(b)(1)(A) Sec. 6653(b)(1)(B) Sec. 6661 1987 $21,182 $15,887 1 $5,296 1 50 percent of the interest payable pursuant to sec. 6601 with respect to the portion of any underpayment that is due to fraud. Additions to Tax Year Deficiency Sec. 6651(f) Sec. 6653(b)(1) Sec. 6654 1988 $10,300 N/A $7,725 $659 1989 16,103 $12,077 N/A 1,089 Unless otherwise indicated, all section r

Under section 6653(a)(1)(B), an addition to tax (equal to 50 percent of the interest payable under section 6601) is imposed with respect to the portion of the underpayment attributable to negligence.

s due after Dec. 31, 1989, OBRA 89 sec. 7721(d), 103 Stat. 2400. The repeal does not affect the instant cases. The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. 350 percent of the interest payable with respect to the portion of the underpayment attributable to negligence. 4In the alternative to the addition to

Gross Income As Reported On As Reported On Year Original Returns Amended Return As Agreed To 1986 $10,482 -- $32,248 1987 20,316 $30,504 37,166 OPINION For 1986 and 1987, additions to tax for fraud are equal to 75 percent of the portion of an underpayment that is attributable to fraud, plus an amount equal to 50 percent of interest payable under section 6601 with respect to such portion.

Section 6653(a)(2) provides for an addition to tax in an amount equal to 50 percent of the interest payable under section 6601 with respect to that portion of an underpayment attributable to negligence or intentional disregard of rules and regulations.

Section 6653(b)(2), applicable to petitioner's 1984 and 1985 returns, provides for an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to fraud.

Section 6653(a)(1)(B) also provides for an addition to tax of 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment which is attributable to negligence or intentional disregard of rules and regulations.

The repeal does not affect the instant cases. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - $1,202, and under section 6653(a)(2) in amounts equal to 50 percent of the interest due on the respective underpayments attributable to negligence

For the taxable years 1983 through 1985, if any portion of an underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment, as well as an amount equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to fraud.

Section 6653(a)(2), as applicable for 1981 through 1983, imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence (the interest-sensitive addition to tax).

For 1987, section 6653(a)(1)(A) provides that if any part of the underpayment is due to negligence or disregard of rules or regulations, there shall be added to the tax an amount equal to 5 percent of the underpayment.

For 1982, 1983, 1984, and 1985, section 6653(b)(1) provides for an addition to tax equal to 50 percent of the entire underpayment when any part of an underpayment is due to fraud, and section 6653(b)(2) provides for an addition to tax equal to 50 percent of the interest payable under section 6601 for that portion of the underpayment that is attributable to fraud.

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to negligence.

Section 6653(a)(1)(B), which applies to 1987, imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

Section 6653(a)(2) imposes a separate addition to tax, equal to 50 percent of the interest payable under section 6601, on the portion of the underpayment that is attributable to the negligence of the taxpayer.

- 50 - For 1983, 1984, and 1985, if any portion of a tax underpayment is attributable to fraud, the addition to tax for fraud under section 6653(b)(1) equals 50 percent of the total underpayment of tax, and the increased interest under section 6653(b)(2) equals 50 percent of the interest payable under section 6601 but only with respect to that portion of the underpayment that is attributable to fraud.

For the taxable year 1985, if any portion of an underpayment of tax required to be shown on a return is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment as well as an amount equal to 50 percent of the interest payable under section 6601 with respect to that portion of the underpayment attributable to fraud.

Section 6653(b)(2) provides for a further addition of 50 percent of the interest due under section 6601 upon that - 16 - portion of an underpayment of tax by a taxpayer which is specifically attributable to fraud.

ar Deficiency Additions to Tax Sec. 6653(b)(1)(A) Sec. 6653(b)(1) Sec.6653(b)(1S)e(cB.) 6661 1987 $48,286 $36,215 1 $12,072 1988 23,621 $17,716 5 , 905 1Sec. 6653(b)(1)(B) provides for an addition to tax equal to 50 percent of the interest due under sec. 6601 on the portion of the underpayment attributable to fraud. After concessions, the issues for adjudication are whether petitioner is liable for: (1) Income tax deficiencies for taxable years 1987 and 1988; (2) additions to tax for substantial

Section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to negligence.

Section 6653(a)(2) provides for an addition to tax of 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment which is attributable to negligence or intentional disregard of rules or regulations.

Section 6653(a)(2) provides for an addition to tax of 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment which is attributable to negligence or intentional disregard of rules or regulations.

(2) Additional Amount for Portion Attributable to Fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and (B) for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the da

The annual rate of interest under section 6621(c) equals 120 percent of the interest payable under section 6601 with respect to any substantial underpayment attributable to tax- motivated transactions.

a)(1)(B) 1986 $193,361 $48,408 --- $9,682 * 1987 56,203 14,051 --- 2,810 * 1988 27,341 6,835 $1,367 --- --- Valdis and Vaida Vipulis - Docket No. 2277-93 Additions To Tax Sec. Sec. Sec. Year 6653(a)(1) 6653(a)(2) 6661 1985 $2,290 ** $11,449 * 50% of sec. 6601 interest due on the deficiency amount. ** 50% of the interest due on $45,797. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court

Section 6653(a)(2) imposes a separate addition to tax, equal to 50 percent of the interest payable under section 6601, on the portion of the underpayment that is attributable to the negligence of the taxpayer.

a)(1)(B) 1986 $193,361 $48,408 --- $9,682 * 1987 56,203 14,051 --- 2,810 * 1988 27,341 6,835 $1,367 --- --- Valdis and Vaida Vipulis - Docket No. 2277-93 Additions To Tax Sec. Sec. Sec. Year 6653(a)(1) 6653(a)(2) 6661 1985 $2,290 ** $11,449 * 50% of sec. 6601 interest due on the deficiency amount. ** 50% of the interest due on $45,797. Unless otherwise indicated, all section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court

6653(b)(2) provided in part: (2) Additional amount for portion attributable to fraud.-- There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (continued...) - 16 - Petitioner argues that the results of the convictions for tax evasion are inconclusive based on his acquittal on the charge of conspiracy to defraud the United States.

Section 6653(a)(2), as applicable for 1981 through 1983, imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence (the interest-sensitive addition to tax).

Section 6653(a)(1)(B), for returns due in 1987 and 1988, and section 6653(a)(2) for returns due in 1982 through 1986, impose an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment due to negligence.

. The repeal does not affect the instant cases. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1994, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - was filed. Petitioners Sidney and Beverly Cohn resided in Farmington Hills, Michigan, when their petition was filed. During 1981, petitioners Jef

s Federal income tax: - 2 - Additions to Tax Sec. Sec. Sec. Year Deficiency 6653(b)(1) 6653(b)(2) 6661 1983 $79,722 $39,861 1 $19,931 1984 39,785 19,982 1 9,946 1 The addition to tax under sec. 6653(b)(2) is 50 percent of the interest payable under sec. 6601 with respect to the portion of the underpayment that is attributable to fraud. All section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Proce

For 1984 and 1985, section 6653(b)(1) provides for an addition to tax equal to 50 percent of the entire underpayment when any part of an underpayment is due to fraud, and section 6653(b)(2) provides for an addition to tax equal to 50 percent of the interest payable under section 6601 for that portion of the underpayment that is attributable to fraud.

(2) Additional Amount for Portion Attributable to Fraud.--There shall be added to the tax (in addition to the amount determined under paragraph (1)) an amount equal to 50 percent of the interest payable under section 6601-- (A) with respect to the portion of the underpayment described in paragraph (1) which is attributable to fraud, and (B) for the period beginning on the last day prescribed by law for payment of such underpayment (determined without regard to any extension) and ending on the da

, in the amount of $2,000 2(...continued) case. For simplicity, we will refer to this section as sec. 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - is not includable in petitioners' taxable income for tax year 1981. Lastly, the parties stipulated that sections 6653, 6661, and 6621(c) were not

984, should be calculated at 120 percent of the statutory rate under section 6621(c). 2(...continued) 6621(c). The annual rate of interest under sec. 6621(c) for interest accruing after Dec. 31, 1984, equals 120 percent of the interest payable under sec. 6601 with respect to any substantial underpayment attributable to tax-motivated transactions. - 4 - On March 23, 1994, the parties in these cases each filed a Stipulation of Settled Issues. In each Stipulation of Settled Issues, the parties agre

Also for 1987, section 6653(a)(1)(B) imposes an addition to tax equal to 50 percent of the interest payable under section 6601 with respect to the portion of the underpayment attributable to negligence.