St. Charles Investment Co., Burton C. Boothby, Tax Matters Person - Page 9

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          giving rise to them, its right to use those PAL's will be lost              
               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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