Norwest Corporation and Subsidiaries, Successor in Interest to United Banks of Colorado, Inc., and Subsidiaries, et al. - Page 76

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               Petitioner's reliance on Gottesman & Co. v. Commissioner,              
          77 T.C. 1149 (1981), is misplaced.  In Gottesman, this Court held           
          that, since the consolidated return regulations did not mandate a           
          consolidated calculation of the accumulated earnings tax under              
          section 531, the taxpayer was permitted to use a separate company           
          calculation.  In this case, however, petitioner seeks to adopt a            
          method that is contrary to an express provision of the Code, section        
          56(c).  Gottesman is inapposite.                                            
               In light of our analysis, we believe that petitioner's other           
          arguments do not merit discussion.  In conclusion, the deduction            
          under section 56(c) for an affiliated group of corporations is              
          limited to the group's actually imposed chapter one tax, and,               
          therefore, petitioner's claims for refunds must fail.                       
               E.  Conclusion                                                         
               Petitioner is not entitled to refunds of payments made to              
          satisfy the UBC affiliated group's corporate minimum tax liabilities        
          for the years in issue.                                                     
          IV. Furniture and Fixtures Recovery Period Issue                            
               A.  Introduction                                                       
               We must determine the applicable recovery period for certain           
          furniture and fixtures (the furniture and fixtures) placed in               
          service by various members of the UBC affiliated group during the           
          group’s 1987, 1988, and 1989 taxable years.  The applicable recovery        

          24(...continued)                                                            
          for other purposes, such as the addition to tax under sec.                  
          6655(a), does not change our conclusion that the amounts derived            
          from such allocation are not taxes imposed by chapter one of                
          subtitle A of the Code.                                                     


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