Case: Acquired Corporation’s Premerger Overpayments Can’t Be Netted Against Surviving Corporation’s Underpayment, Interest Netting Is Not Allowed (W.D.N.C) (IRC §6621)

Under I.R.C. §6621(d), a corporation that survived a merger can’t net the acquired corporation’s two premerger overpayments against the surviving corporation’s premerger underpayment because interest netting is allowed only when there are “underpayments and overpayments by the same taxpayer,” a district court held, denying the surviving corporation’s motion for summary judgment and granting in part the government’s motion for summary judgment. Under §6621(d), when “underpayments and overpayments by the same taxpayer” offset each other, no interest is due: the net interest rate is zero while the offset lasts, and nullifying the interest rate in this way is called ...