Federal National Mortgage Association v. U.S., (2006)

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Federal National Mortgage Association v. U.S., (2006)

United States Court of Appeals for the Federal Circuit

United States Court of Appeals for the Federal Circuit

FEDERAL NATIONAL MORTGAGE ASSOCIATION,

Plaintiff-Appellant,

v. UNITED STATES,

Defendant-Appellee.

Alan I. Horowitz, Miller & Chevalier, Chartered, of Washington, DC, argued for plaintiff-appellant. With him on the brief were Thomas D. Johnston and Laurie A. Barber.

Ellen Page Delsole, Attorney, Tax Division, United States Department of Justice, of Washington, DC, argued for defendant-appellee. With her on the brief were Eileen J. O'Connor, Assistant Attorney General, Richard T. Morrison, Deputy Assistant Attorney General, and Richard Farber, Attorney.

Appealed from: United States Court of Federal Claims Senior Judge John P. Wiese

United States Court of Appeals for the Federal Circuit 06-5055

FEDERAL NATIONAL MORTGAGE ASSOCIATION,

Plaintiff-Appellant,

v.

UNITED STATES,

Defendant-Appellee.

DECIDED: November 13, 2006

Before MICHEL, Chief Judge, DYK and PROST, Circuit Judges. DYK, Circuit Judge.

This is the second time this case has come before this court. This case involves a claim for interest netting under § 6621(d) of the Internal Revenue Code. 26 U.S.C. § 6621(d) (2000). The Federal National Mortgage Association ("FNMA") asserts that it is entitled to a refund of interest paid by the taxpayer to the Internal Revenue Service ("IRS") based on the theory that mutual indebtedness of the taxpayer and the IRS for different tax years should be netted against each other with the result that the taxpayer was not liable for interest. The government defends on the ground that the interest netting provision is inapplicable.

When th...

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