Case: Corporation Cannot Net Interest for Pre-Merger Underpayments and Overpayments (4th Cir.) (IRC §6621)

A corporation cannot net interest on pre-merger underpayments and overpayments made by different corporations, held the U.S. Court of Appeals for the Fourth Circuit, affirming the district court’s grant of partial summary judgment in favor of the government. Taxpayer, a bank, sought to recover interest by netting pre-merger underpayments it made against pre-merger overpayments made by another bank it later merged with. Taxpayer argued that post-merger integration rendered it the “same taxpayer” as the other bank for purposes of the interest netting provision in I.R.C. §6621(d). The district court granted partial summary judgment for the government, and Taxpayer appealed. The ...