- 38 -
FOLEY, J., concurring in result only: I agree with the
majority's holding. Section 108(d)(7)(A) explicitly provides
that subsections (a), (b), (c), and (g) of section 108 are to be
applied at the corporate level. I write separately to emphasize
that after the application of section 108(b) and the resulting
reduction of tax attributes (i.e., MAI's net operating loss)
there are no "items of income", tax-exempt or otherwise, to which
section 1366(a) may apply. The legislative history accompanying
the Bankruptcy Tax Act of 1980 states that after a taxpayer
reduces its tax attributes "Any further remaining debt discharge
amount is disregarded, i.e., does not result in income or have
other tax consequences." S. Rept. 96-1035, at 2 (1980), 1980-2
C.B. 620, 621. Thus, there are no "items of income", and, as a
result, no basis adjustment pursuant to section 1367.
Accordingly, there is no need to distinguish between "tax-exempt"
and "deferred" income.
SWIFT, PARR, WHALEN, and COLVIN, JJ., agree with this
concurring in result only opinion.
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Last modified: May 25, 2011