- 20 - that respondent could not recover the tentative refunds from Interlake through the deficiency procedures.1 Interlake was represented by Messrs. Newman and Updegraft during all phases of the proceedings before the Court in Interlake v. Commissioner, supra. Summary Assessment of the 1985 Tentative Refund In March 2000, respondent made a “summary assessment” under section 6213(b)(3) of the $3,542,388 tentative refund respondent had paid petitioner for 1985. Section 6213(b)(3) provides that 1On Sept. 26, 2000, respondent issued proposed regulations that purport to clarify and supplement the rules under sec. 1.1502-77, Income Tax Regs., concerning the agent for an affiliated group and the designation of a new agent for the group. The proposed regulations also purport to clarify and modify the rules concerning the proper party to apply for and receive a refund attributable to a tentative carryback adjustment under sec. 1.1502-78, Income Tax Regs. See secs. 1.1502-77 and 1.1502-78, Proposed Income Tax Regs., 65 Fed. Reg. 57755-57763 (Sept. 26, 2000). The preamble to the proposed regulations cites the difficulties in applying the existing regulations to situations in which an affiliated group continues following a restructuring, as highlighted by Interlake Corp. v. Commissioner, 112 T.C. 103 (1999). The proposed amendments to sec. 1.1502- 77(a), Income Tax Regs., provide that the common parent for a consolidated return year remains the agent for the group for that year as long the common parent continues to exist. This rule is to apply even if the common parent, for whatever reason, ceases to be the common parent. The proposed regulations amend sec. 1.1502-78(a), Income Tax Regs., to provide that the common parent for the carryback year should file an application under sec. 6411 for a tentative carryback adjustment with respect to a loss or credit arising in a separate return year that may be carried back to a consolidated return year, and any tentative refund must be paid to the corporation that was the common parent for the carryback year.Page: Previous 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Next
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