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1981 and 1984, prespinoff years during which A
controlled the group. After review by the Internal
Revenue Service, the requested tentative refunds were
issued to P and A, respectively. The tentative refunds
issued to A were treated as rebate refunds with respect
to P and the group for purposes of computing the
group's deficiencies for 1981 and 1984.
P contends that the tentative refunds in issue
were paid to the wrong taxpayer, and therefore the
tentative refunds do not constitute rebate refunds. R
concedes that a refund issued to the wrong taxpayer, or
to an unauthorized representative of the taxpayer is a
nonrebate refund that may not be taken into account in
determining the taxpayer's deficiency. However, R
contends that payment to A was proper because A was an
authorized representative of the group for purposes of
the issuance of the tentative refunds.
Held: The tentative refunds constitute nonrebate
refunds with respect to P and the group because A's
authority to act for the group, at least with respect
to the issuance and receipt of the tentative refunds,
terminated when A's affiliation with the group
terminated. Accordingly, A was not an authorized
recipient of the tentative refunds, and respondent
cannot seek recovery of the tentative refunds from P
through the deficiency procedures. Union Oil Co. v.
Commissioner, 101 T.C. 130 (1993), distinguished.
John M. Newman, Jr., and Kenneth E. Updegraft, Jr., for
petitioner.
Lawrence C. Letkewicz, for respondent.
OPINION
WELLS, Judge: This matter is before the Court on the
parties' cross-motions for summary judgment pursuant to Rule
121(a). Unless otherwise indicated, all section references are
to the Internal Revenue Code in effect for the taxable years in
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