Intermet Corporation & Subsidiaries - Page 7

                                        - 7 -                                         

                    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.                                                              




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  Next

Last modified: May 25, 2011