Not-for-profit corporation brought action against the United States to recover overpayments of employment taxes. After agreeing that a refund was owed and on amount of refund, both parties filed motions for summary judgment on issue of applicable interest rate.
The District Court held that:
- Corporation was a business entity within meaning of “check-the-box” regulations;
- Corporation could not elect to classify itself as a partnership; and
- As matter of apparent first impression, corporate interest rate applied to the refund.