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remaining issues as reflected in their Stipulation of Settled
Issues.2 The parties' motion was granted February 6, 1995.
In late February 1995, respondent discovered that she may
have erred in allowing petitioner a general business credit for
the taxable period ended September 30, 1989.3 Counsel for
respondent first mentioned the matter of the correct computation
of petitioner's general business credit to counsel for petitioner
in a letter dated March 22, 1995, concerning petitioner's taxable
year ended September 30, 1990. Counsel for petitioner was
formally advised of respondent's position regarding the
computation of petitioner's general business credit in this case
by way of a letter dated June 1, 1995. In that letter,
respondent took the position that petitioner is not entitled to a
general business credit for the taxable year ended September 30,
1989, on the ground that the $18,944,258 general business credit
carryforward that respondent originally used in computing
petitioner's credit is subject to the separate return limitation
2 The sole unresolved issue is identified as the amount, if
any, of petitioner's foreign tax credit for its taxable year
ended Sept. 30, 1989. The parties explained that the amount of
the credit was dependent upon a then unresolved computation as
well as upon the determination of the correct amount of
carryforwards and carrybacks from prior and subsequent years--
years at issue in docket No. 20225-92 (A.E. Staley Manufacturing
Co. v. Commissioner, 105 T.C. 166 (1995)), and Tate & Lyle, Inc.
v. Commissioner, docket No. 16169-94.
3 Respondent concedes that she was in possession of all the
information necessary to compute properly petitioner's general
business credit at the time that she issued the notice of
deficiency in this case.
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