- 5 -
were carried forward and claimed as a credit on the 1985 amended
return, generating a claimed refund of $6,771,601 for that year.
The carryover also “freed up” investment tax credits of
$38,372,409 claimed on the original 1985 return, which petitioner
treated as eligible to be carried forward to later years.
In the notice of deficiency, respondent denied petitioner’s
refund claim made by way of the 1985 amended return. Respondent
determined that petitioner’s taxable income for 1980 through
1985, and its NOL carryover deductions for 1982 through 1985,
were as follows:
Taxable Income Per NOL
Year Notice of Deficiency Carryover Deduction
1980 $(1,073,590,197) -0-
1981 (458,366,008) -0-
1982 -0- $1,631,010
1983 -0- 527,861,679
1984 323,669,637 1,356,138,685
1985 1,311,979,860 -0-
Taking into account agreed adjustments, the table in appendix C
shows the result if petitioner is allowed to change its reporting
for foreign taxes accrued in 1980, 1981, and 1982 from a
deduction to a credit.
Discussion
The issue at hand involves three sections of the Code;
namely, sections 901, 904, and 6511. These sections provide in
relevant part as follows:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011