Court Opinion

ID: 9447354
Source: CourtListenerOpinion
Date Created: 2023-08-03 22:32:49.404907+00
Date Added: 2024-06-11T17:31:00.288764
License: Public Domain

On Petition for Rehearing.
ALDRICH, Circuit Judge.
Appellants have filed a petition for rehearing, claiming that we erred in our underlying premise that a taxpayer who files a bond after a jeopardy assessment pays “interest on interest as a result of sections 273(i) and 297.” Section 273 (i) provides that “when the amount which should have been assessed has been determined by a decision of the Tax Court which has become final, then any unpaid portion, the collection of which has been stayed by the bond, shall be collected * * * .” Appellants contend that “the amount which should have been assessed” means only the basic deficiency. This overlooks the fact that when the Commissioner has determined that a jeopardy assessment is to be made, section 273(a) provides for the assessment of the deficiency “together with all interest”; and that sction 278(f) provides for staying the collection of the “amount of the assessment” by the filing of a bond which is “conditioned upon the payment of so much of the amount, the collection of which is stayed by the bond, as is not abated by a decision of the Tax Court which has become final, together with interest thereon as provided in section 297.” See also section 273(g), which supplements sections 273 (f) and (i) and section 297, by providing for the case in which the taxpayer files a bond to stay collection but then decides not to petition for a redetermination. We do not think that with respect to these sections generally the appellants could contend that the “assessment” stayed by the bond does not include deficiency interest, or that under section 273(g) interest is not charged on interest.
Appellants do suggest, however, that “the amount which should have been assessed” (section 273(i)) is limited to the deficiency because, they claim, the Tax Court has no jurisdiction over interest. This may well be true with regard to deficiencies determined and assessed in the normal manner under section 272. See Commissioner of Internal Revenue v. Kilpatrick’s Estate, 6 Cir., 1944, 140 F.2d 887. But section 273(c), dealing with jeopardy assessments, specifically provides that “the Tax Court shall have jurisdiction to redetermine the entire amount of the deficiency and of all amounts assessed at the same time in connection therewith.” (Italics supplied). This is to be compared with the more limited language of section 272(e), applicable to normal deficiency proceedings. Also compare section 273 (i), “Collection of unpaid amounts,” with section 272(b), “Collection of deficiency found by Tax Court,” which further points up the distinction between jeopardy-assessment procedure and normal deficiency procedure.
The petition for rehearing is denied.