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transaction in which petitioner became the successor common
parent of the group.
On or about September 14, 1987, the service center, after
processing petitioner's application, made a tentative refund
allowance to petitioner in the amount of $5,346,097. The service
center charged the tentative refund allowance to the Federal
income tax account of the group for 1984 (i.e., to the tax
account of Acme).
Acme
Acme and its wholly owned domestic subsidiary, AMC, had a
short taxable year for 1986, which short taxable year began on
June 23 and ended on December 28. On their consolidated Federal
income tax return for the 27-week short taxable year ended on
December 28, 1986, Acme, and its consolidated subsidiary, AMC,
reported a CNOL in the amount of $29,286,968, the entire amount
of which was attributable to Acme. The return was prepared on
the basis that, after the spinoff, Acme and its consolidated
subsidiary, AMC, constituted a new consolidated group, which was
unrelated to petitioner and the group.
On or about September 17, 1987, Acme and its consolidated
subsidiary filed, with the service center, two Forms 1139,
Corporation Application for Tentative Refund. On the first Form
1139, Acme and its consolidated subsidiary requested a tentative
refund of income tax in the amount of $11,298,371, attributable
to the carryback of the Acme 1986 short-year CNOL to Acme's
(i.e., the group's) 1984 and 1985 tax years. Included in the
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