Sprint Corporation and Subsidiaries, f.k.a. United Telecommunications, Inc. - Page 34

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               K�RNER, J., dissenting:  The majority, relying on Norwest              
          Corp. & Subs. v. Commissioner, 108 T.C. ___ (1997), filed this              
          date, concludes that the computer software in issue is tangible             
          for purposes of the investment tax credit and for purposes of the           
          accelerated cost recovery system (ACRS).  I disagree with the               
          conclusion reached in Norwest, and respectfully dissent from its            
          application to this case.                                                   
          I.  Majority Opinion                                                        
               The majority holds that based on Norwest, the software is              
          tangible, and further that Sprint was the owner of the software.            
          I did not have a vote in Norwest, and therefore was unable to               
          voice my opposition at the time of its adoption.  In Norwest, the           
          Court offers an expansive analysis that discredits the intrinsic            
          value test; unfortunately, its analysis of its own test is                  
          nowhere near as thorough.  Indeed, one of the faults the Court              
          found in Ronnen v. Commissioner, 90 T.C. 74 (1988), was that it             
          lacked "rigorous analysis".  Norwest Corp. & Subs. v.                       
          Commissioner, supra at __ (slip op. at 19).  One would expect               
          that the Norwest majority, in light of such murky reasoning as it           
          perceived in Ronnen, would take the opportunity to clear the air            
          with a definitive test, or at the very least offer some                     
          compelling reasoning to abandon the established precedent of this           
          Court.  Instead, they summarily conclude, with virtually no                 
          analysis, that the software was tangible.  This conclusion is               
          based on their interpretation of the legislative history of the             
          investment tax credit that the tangibility requirement should be            



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