Blue Cross & Blue Shield of Texas, Inc. and Subsidiaries - Page 22

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            not even used in the letter.  We conclude that Blue Cross did not                          
            satisfy the disclosure requirement for safe harbor relief under                            
            section 1.832-4(f)(2), Income Tax Regs.                                                    
                  Further, as previously held, Blue Cross’ calculation of its                          
            estimated salvage recoverable (consisting predominantly of COB                             
            savings) does not reflect “bona fide” or genuine salvage                                   
            recoverable, and therefore Blue Cross’ disclosure of that                                  
            calculation would not satisfy the disclosure required for safe                             
            harbor relief under section 1.832-4(f)(2), Income Tax Regs.                                
                  To reflect the foregoing,                                                            
                                                            Decision will be entered                   
                                                      under Rule 155.                                  

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