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Because there is no dispute as to the material facts
respecting the question of the applicability of the period of
limitations, the issue is ripe for summary adjudication.
Section 1501, which grants the authority for affiliated
corporations to file consolidated income tax returns, provides
that, upon filing a consolidated return, the members of the
consolidated group consent to all of the consolidated return
regulations prescribed under section 1502. Section 1502 provides
that the Secretary shall prescribe such regulations as may be
deemed necessary so that the tax liability of an affiliated group
may be returned, determined, computed, assessed, collected, and
adjusted in such a manner as clearly to reflect the income tax
liability.
Pursuant to the authority granted in section 1502, the
Secretary promulgated section 1.1502-77(a), Income Tax Regs.,
which provides in pertinent part:
Common parent agent for subsidiaries.--(a) Scope of
agency of common parent corporation. The common
parent, for all purposes * * * [other than exceptions
not applicable here], shall be the sole agent for each
subsidiary in the group, duly authorized to act in its
own name in all matters relating to the tax liability
for the consolidated return year. Except as provided
in the preceding sentence, no subsidiary shall have
authority to act for or to represent itself in any such
matter. * * *; the common parent in its name will give
waivers, give bonds, and execute closing agreements,
offers in compromise, and all other documents, and any
waiver or bond so given, or agreement, offer in
compromise, or any other document so executed, shall be
considered as having also been given or executed by
each such subsidiary. * * * Notwithstanding the
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