Interest on Overpayments (Interest v. No Interest)

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200512019
Release Date: 3/25/2005
CC:PA:APJP:B01
POSTN-160021-04
Third Party Communication: None
Date of Communication: Not Applicable
UILC: 148.00-00, 6611.00-00 date: February 16, 2005 to: Clifford J. Gannett
Manager, Tax Exempt Bonds Outreach, Planning and Review
(SE:T:GE:TEB:O) from: James Coffey Gibbons
Branch Chief, Administrative Provisions & Judicial Practice, Branch 1
(Procedure & Administration) subject: Computation of Arbitrage Rebate Overpayment Eligible for Refund This Chief Counsel Advice responds to your request for assistance. This advice may not be used or cited as precedent.

# ISSUE

Does future valuing a rebate payment for purposes of computing rebate overpayment constitute the payment of statutory interest.

# CONCLUSION

To answer your inquiry we must provide legal advice on section 148 and section
1.148-3 of the Income Tax Regulations. That section of the Code and regulations is not within our jurisdiction. Rather, it belongs to CC:TEGE:EOEG:TEB, which was unable to provide determinative assistance with respect to your precise question. Because we cannot answer your question outside of the context of section 148, we are closing this matter. Future inquiries involving future valuing rebate payment for purposes of computing rebate overpayment should be routed through CC:TEGE:EOEG:TEB.
POSTN-160021-04 2
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