The court also noted that the government's "constructive return" theory was a flawed interpretation ofRevenue Procedure 84-58, but that the theory made some sense in connection with section 6603, which allows interest on returned deposits at a reduced rate (section 6603 interest). Ford made an argument that because section 6603 allows a taxpayer who requests the return of a deposit to obtain section 6603 interest computed from the date of remittance date, it didn't make sense to interpret section 6611 to allow a taxpayer who converts a deposit to recover interest only from the conversion date. The government responded that the conversion of a deposit involves two separate transactions. First, the deposit is constructively returned, and then it is immediately re-submitted as a payment. The court noted that under this reasoning, section 6603 would allow interest to be paid at two different rates—the lower section 6603 rate from the date of deposit to the date of conversion and at the normal interest rate from the date of conversion to the date of refund.About RyanRyan is an award-winning global tax services firm, with the largest indirect tax practice in North America and the sixth largest corporate tax practice in the United States. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a two-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan's multi-disciplinary team of more than 1,600 professionals and associates serves over 6,500 clients in 40 countries, including many of the world's most prominent Global 5000 companies. More information about Ryan can be found at www.ryan.com.
Ford Motor Co. V. United States, (No. 10-1934) (United States Court Of Appeals For The Sixth Circuit), 2012 TNT 243-16, Aff'g Ford Motor Co. V. United States, No. 2:08-cv-12960 (E.D. Mich. 2010), 2010 TNT 108-15.
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