Alumax Inc. and Consolidated Subsidiaries - Page 101

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          1504(a)(1)(B) and (2)(B) was satisfied for 1985 and 1986.                   
          Consequently, we hold that for 1984 and for 1985 and 1986 peti-             
          tioners were not members of the affiliated group within the                 
          meaning of section 1504(a) and amended section 1504(a), respec-             
          tively, that had Amax as its common parent.30  Accordingly, we              
          sustain respondent's determination that petitioners are not                 
          entitled to join in the consolidated return that Amax filed for             
          each of those years in which it claimed to be the common parent             
          of a group of corporations that included petitioners.31                     
          Period of Limitations                                                       
               Petitioners argue that even if the Court were to find that             
          petitioners are not entitled to join in the consolidated return             
          that Amax filed for each of the years 1984, 1985, and 1986, the             
          respective periods of limitations for those years for assessing             
          tax due from petitioners' group have expired.  Respondent argues            
          that section 1.1502-77(c)(2), Income Tax Regs., rejects petition-           
          ers' contention.  That regulation provides:                                 
                    (c)  Effect of waiver given by common parent.                     


          30  We note that the issue presented here under sec. 1504(a) and            
          amended sec. 1504(a) turns on the particular facts established by           
          the record in this case, and nothing in this Opinion is intended            
          to be, or should be read as, deciding or implying any finding or            
          conclusion of this Court under that section in other cases                  
          involving facts that may appear to be similar to those presented            
          in the present case.                                                        
          31  In reaching our holding, we have considered all of petition-            
          ers' arguments that are not discussed herein and found them to be           
          without merit.                                                              





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