Phillip Purer Winifred Purer v. United States

In this appeal from the district court’s denial of a claim for refund of allegedly overpaid income taxes, the appellants contend that the Internal Revenue Service misinterpreted a statute that changed the manner in which interest on deficiencies was calculated, and was estopped from claiming a portion of the accumulated interest on the appellants’ tax deficiency. We review de novo, see First American Title Ins. Co. v. United States, 848 F.2d 969, 970 (9th Cir.1988), and we affirm.

Prior to January 1, 1983, the Internal Revenue Service imposed simple statutory interest on unpaid taxes; after December 31, 1982, interest on tax deficiencies was to be determined by reference to a floating rate and compounded daily. See 26 U.S.C. §§ 6601 (a); 6621; 6622(a). The appellants argue that the above change applies only to the principal due on pre-1983 tax deficiencies and not to any accumulated interest. This position is without merit.

There is nothing in any of the above statutes which supports the appellants’ argument. Similarly, the effective date provision of Pub.L. No. 97-248, § 344 (c), 96 Stat. 635 (1982), which says that “[t]he amendments made by this section shall apply to interest…