- 9 -
giving rise to them, its right to use those PAL's will be lost
forever.
We deal first with petitioner's position in respect of the
proper interpretation of section 1371(b)(1). Clearly, Congress
could not have had PAL's specifically in mind when it enacted
section 1371(b)(1) in 1982, since section 469 was not enacted
until 1986. But even petitioner does not suggest that this
factor, in and of itself, is determinative. Rather, petitioner
goes on to argue that the word "carryforward" was intended to
refer only to those items which are specifically so described in
other provisions of the Code.4 We disagree.
In construing the meaning of a statute, we seek the plain
meaning of its language, assuming that Congress uses common words
in their popular meaning, and relying on the words as generally
understood. Norfolk S. Corp. v. Commissioner, 104 T.C. 13, 36-37
(1995) and cases cited thereat, modified 104 T.C. 417 (1995).
The language of section 1371(b) ("No carryforward, and no
carryback") is broad, unlike that of other sections which specify
certain types of carryforwards and carrybacks. See supra note 4.
The legislative history of section 1371(b) supports a broad
4 See, e.g., sec. 170(d)(1) and (2) (charitable
contributions); sec. 38(a) (business credit carryforwards and
carrybacks); sec. 172 (net operating loss carryovers and
carrybacks); sec. 904(c) (foreign tax credit); sec. 1212 (capital
loss carrybacks and carryovers); sec. 1374(b)(2) and (3) (net
operating loss carryforward, capital loss carryforward, and
business credit carryforwards).
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