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United States Second Circuit

Exxon Mobil Corp. v. Comm'r of Internal Revenue, 11-2814

The judgment of the Tax Court holding that taxpayers Exxon Mobil Corporation and its affiliates are entited to retrospective "netting" of interest for overlapping overpayments and underpayments of taxes for the years 1975 through 1980, is affirmed, as although the languages of the special rule is ambiguous, the structure of section 6621(d) of the Internal Revenue Code as a whole, as well as its historical context and purpose, makes clear that taxpayers may benefit from retrospective global interest netting even when the limitations period for one of the legs of the overlap has expired. Further, the argument of the Commissioner of the Internal Revenue that the special rule is a waiver of sovereign immunity, and must therefore be strictly construed in favor of the government is rejected.

Appellate Information

  • Decided 08/08/2012
  • Published 08/08/2012


  • Cabranes


  • United States Second Circuit


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