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OPINION2
CHIECHI, Judge: Respondent determined the following defi-
ciencies in petitioners' Federal income tax:
Taxable Year Ended Deficiency
Dec. 31, 1981 $5,663,086
Dec. 31, 1983 11,454,565
Dec. 31, 1984 40,433,142
Dec. 31, 1985 48,511,681
Nov. 24, 19861 23,175,558
1 We shall refer to the taxable year ended Nov. 24, 1986, as
1986.
The principal issues for decision are:3
(1) Were petitioners members of the affiliated group within
the meaning of section 1504(a) that had Amax Inc. (Amax) as its
common parent, which filed a consolidated Federal income tax
return (consolidated return) for each of the years 1984, 1985,
and 1986 that included petitioners?4 We hold that they were not
2 Unless otherwise indicated, our Opinion pertains to the years
1984, 1985, and 1986 (period at issue).
3 Correlative issues also remain as to whether petitioners are
entitled for 1981 and 1983 to general business credits that they
carried back (1) from 1984 to 1981 and (2) from 1985 and 1986 to
1983. Respondent claims, and petitioners do not dispute, that
resolution of those correlative issues is governed by the Court's
holdings on the principal issues presented.
4 We shall sometimes refer (1) to the corporations that are
petitioners in this case and that were included in the consoli-
dated returns filed by Amax as the common parent of an affiliated
group for the years 1984, 1985, and 1986 as petitioners' group
and (2) to Amax and its subsidiaries, excluding petitioners'
group, that were included in those consolidated returns as the
Amax group.
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