Intermet Corporation & Subsidiaries - Page 18

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          is factually on point with the instant case,14 we cited both                
          cases in our analysis above because they offer insight into the             
          operation of the consolidated return regulations as they relate             
          to the NOL of a consolidated group.                                         
               In light of our holding that the deductions for the taxes              
          and interest in issue do not qualify as SLL's within the meaning            
          of section 172(f), because they were not taken into account in              
          the computation of the group's CNOL as required by section                  
          172(f)(1), it is unnecessary to reach the parties' arguments                
          concerning the application of section 172(f)(1)(B) and (f)(2) to            
          the instant case.                                                           



          13(...continued)                                                            
          I.R.C. 1954, and the consolidated return regulations.  The court            
          found that the parent of a consolidated group could carry back,             
          to a consolidated year, product liability losses (PLL's), as                
          defined in sec. 172(j), I.R.C. 1954, attributable to a member of            
          the group that had separate taxable income.  Sec. 172(j), I.R.C.            
          1954, defined a PLL as the lesser of the NOL or the sum of the              
          deductions attributable to expenses related to product liability.           
          The court concluded that because the individual member's PLL's              
          were less than the group's CNOL, the group was entitled to carry            
          back the member's PLL deductions.  United Dominion is clearly               
          distinguishable from the instant case because sec. 172(j), I.R.C.           
          1954, predecessor to sec. 172(f)(1)(A), did not contain the                 
          language in sec. 172(f)(1) which limits SLL's to those that are             
          taken into account in the computation of the NOL for the year.              
          14   Amtel Inc. v. United States, 31 Fed. Cl. 598, 602 (1994)               
          affd. 59 F.3d 181 (1995), concerned the carryback of product                
          liability losses as defined in sec. 172(j), predecessor to sec.             
          172(f)(1)(A), to a separate return year.  Norwest Corp. and Subs.           
          v. Commissioner, 111 T.C. 105, 170 (1998), concerned the                    
          carryback of a consolidated group's CNOL attributable to bank               
          member's bad debts under sec. 172(b)(1)(L).                                 




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