- 2 - application for tentative refund for 1984. The Internal Revenue Service paid P and I the respective tentative refunds for which they had applied. Following an examination, R determined that P, rather than I, was the continuing common parent of the prespinoff affiliated group, revised P’s income on the basis of a 52-week taxable year, and determined that P did not sustain the CNOL claimed on its 1986 return. R also revised I’s income on the basis of a 27-week short 1986 tax year. As a result of the foregoing determinations, R determined that P was not entitled to the tentative refunds paid to P for 1981 and 1984 and issued a notice of deficiency to P to recover the tentative refunds. After P filed the petition in the case at hand, R agreed to treat I as the successor common parent of the prespinoff affiliated group and issued a duplicate notice of deficiency to I, in exchange for P entering into a stipulation of settled issues. The stipulation of settled issues provides, in pertinent part, that P will be liable to disgorge the tentative refunds it was paid for 1981 and 1984 if those tentative refunds are held not to be rebates as to I. In Interlake Corp. v. Commissioner, 112 T.C. 103 (1999), the Court held the tentative refunds paid to P were not rebates as to I. P now contends the Court does not have jurisdiction to enter decision on the stipulation of settled issues because the tentative refunds P received are nonrebate refunds not taken into account in determining a taxpayer’s deficiency. According to P, the tentative refunds are nonrebate refunds because P, as the former common parent of the prespinoff group as conceded by R, was not an “authorized recipient” of the tentative refunds. P contends that when R paid the tentative refunds to P, rather than I, R paid the wrong taxpayer, giving rise to nonrebate refunds. R contends that the tentative refunds are rebate refunds over which the Court has jurisdiction and that the Court may enter decision on the stipulation of settled issues. According to R, nonrebate refunds are issued because of clerical or computer errors and P has not identified any clerical or computer error that caused R to pay the tentative refunds to P. AccordingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011