- 10 - Under paragraph 11 of the agreement, petitioner agrees that if the IRS should determine that petitioner was the continuing common parent, it would grant Interlake an unqualified power of attorney to represent petitioner in connection with all matters involving Federal income tax for the years ending before the effective date. Tax Filings by Interlake and Petitioner On August 7, 1987, Interlake filed Form 1120, Consolidated U.S. Corporation Income Tax Return, for a 52/53-week 1986 tax year ended December 28, 1986. Interlake’s 1986 return reported a $8,461,369 consolidated net operating loss (CNOL) and $1,496,693 of excess consolidated general business credits. On August 11, 1987, Interlake filed Form 1139, Corporation Application for Tentative Refund, with respect to the 1986 tax year. The application requested a tentative carryback adjustment of $5,346,097, attributable to the carryback of the 1986 CNOL and excess consolidated business credits to the group’s 1984 tax year. On September 14, 1987, not much more than 1 month later, respondent paid a $5,346,097 tentative refund to Interlake. On August 28, 1987, petitioner and its wholly owned subsidiary, AMC, filed a consolidated U.S. Corporation Income Tax Return for a 27-week 1986 short tax year, which commenced with the date of the spinoff, June 23, 1986, and ended December 28, 1986. Petitioner’s 1986 return reported a $29,286,968 CNOL, allPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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