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of Objection to Petitioner's Motion for Court to Decide Paty Loss
Issue, in which respondent contended that "It is in the interest
of judicial economy for the Court to continue to hold the PATY
stock loss issue in abeyance pending a further status report by
the respondent regarding the finalization of the stock loss
regulations." In a status report filed May 12, 1997, respondent
informed the Court that the proposed regulations were still not
finalized.
We agree with petitioner that the time has come to decide
this issue. In granting respondent's motion to sever, we relied,
in large part, upon respondent's statement that he was "hopeful"
that the proposed regulations would be finalized by the beginning
of 1997. It is now over 10 years since the enactment of section
865(j)(1) directing the Secretary to promulgate regulations
regarding this issue. However, as of the date of issuance of
this opinion, the regulations still remain in proposed form.
Petitioner has already paid the deficiencies determined in the
notice of deficiency and is entitled to a decision on the merits.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. At
the time its petition was filed, petitioner maintained its
principal place of business in Minneapolis, Minnesota. Damca
International Corp. (Damca) was a wholly owned subsidiary of
petitioner and joined in the filing of petitioner's consolidated
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