Bardahl Manufacturing Corporation v. United States
Opinion
Opinion
The taxpayer appeals from a judgment of the district court rejecting its claim for refund of $51,946.29 in interest on deficiencies in the payment of accumulated earnings tax imposed under section 531 of the Internal Revenue Code of 1954 in respect of the taxable years 1956 through 1959.
The district court held, in accordance with the Government’s contention, that interest on the deficiencies accrued from the due date of the taxpayer’s federal returns, following the general rule prescribed by section 6601(a) of the 1954 Code. It rejected the taxpayer’s argu ment that interest accrued from the date upon which the Internal Revenue Service sent the taxpayer formal notice and demand for payment of the accumulated earnings tax because the tax imposed by section 531 is a “penalty, additional amount, or addition to the tax” within the meaning of section 6601(f) (3) of the 1954 Code.
After the district court decided this case, the opinions came down in Motor Fuel Carriers, Inc. v. United States (1970) 420 F.2d 702 , 190 Ct.Cl. 385 and Ray E. Loper Lumber Co. v. United States (6th Cir. 1971) 444 F.2d 301 , each of which deals with the identical problem.