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the amount of the net operating loss for such taxable
year.
The consolidated return regulations provide rules concerning
the determination and use of NOL's in the consolidated return
context. Section 1.1502-11(a), Income Tax Regs., prescribes that
consolidated taxable income is to be determined by taking into
account the separate taxable income of each member of the group
and, among other things, "Any consolidated net operating loss
deduction". Id. Section 1.1502-21A(a), Income Tax Regs.,3
provides that the CNOL deduction is equal to the aggregate of the
CNOL carryovers and carrybacks to the taxable year. In pertinent
part, section 1.1502-21A(b)(1), Income Tax Regs., provides that
the CNOL carryovers and carrybacks to the taxable year shall
consist of any of the group's CNOL's that may be carried back or
over to the taxable year under the provisions of section 172(b).
3 During 1996, the Department of the Treasury promulgated sec.
1.1502-21T, Temporary Income Tax Regs., 61 Fed. Reg. 33328 (June
27, 1996), generally effective for consolidated return years
beginning on or after Jan. 1, 1997, sec. 1.1502-21T(g)(1),
Temporary Income Tax Regs., 61 Fed. Reg. 33333 (June 27, 1986).
Former sec. 1.1502-21, Income Tax Regs., was redesignated sec.
1.1502-21A, Income Tax Regs., generally effective for
consolidated return years beginning before Jan. 1, 1997. T.D.
8677, 1996-2 C.B. 119, 127. In certain circumstances, a
consolidated group may apply the temporary regulations to all
consolidated return years ending on or after Jan. 29, 1991, and
beginning before Jan. 1, 1997. Sec. 1.1502-21T(g)(3), Temporary
Income Tax Regs, 61 Fed. Reg. 33333 (June 27, 1986). The
consolidated return year in issue began before Jan. 1, 1997, and
neither party contends that the temporary regulations apply in
the instant case. Accordingly, it is undisputed that sec.
1.1502-21A, Income Tax Regs., applies to the consolidated return
year in issue.
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