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An affiliated group of corporations shall * * * have
the privilege of making a consolidated return with respect
to the income tax imposed by chapter 1 for the taxable
year in lieu of separate returns. The making of a
consolidated return shall be upon the condition that all
corporations which at any time during the taxable year
have been members of the affiliated group consent to all
the consolidated return regulations prescribed under
section 1502 prior to the last day prescribed by law for
the filing of such return. * * *
Pursuant to section 1502, Congress has granted to the Secretary of
the Treasury broad authority to prescribe such regulations as he may
deem necessary with respect to the making of consolidated returns.
There are no regulations, however, that directly address the
calculation of the corporate minimum tax for an affiliated group of
corporations that makes a consolidated return.22 In the absence of
consolidated return regulations governing a particular point, this
Court shall look to the Code or other law. See, e.g., Wegman's
Properties, Inc., & Subs. v. Commissioner, supra at 790; sec.
22 On Mar. 19, 1970, the Internal Revenue Service (the IRS)
issued Technical Information Release No. 1032, which stated, in
part, as follows:
The Internal Revenue Service today announced that
amendments will be made to the regulations to reflect
the effect on consolidated returns and partnerships of
the addition by the Tax Reform Act of 1969 of the
minimum tax for tax preferences.
The amendment relating to consolidated returns
will make clear that the election by affiliated groups
of corporations to file a consolidated Federal income
tax return is effective with respect to the computation
of the minimum tax as well as the regular income tax.
Those amendments, however, were never made. On July 31, 1984,
the IRS issued, but never finalized, a proposed amendment to sec.
1.1502-2, Income Tax Regs., which would have added the corporate
minimum tax to the list of taxes to be computed as part of an
affiliated group's consolidated tax liability.
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