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Petitioner contends the tentative refunds it received as the
result of the tentative carryback adjustments for 1981 and 1984
are nonrebate refunds that respondent cannot recover through the
deficiency proceedings. Petitioner argues the nonrebate
character of the tentative refunds because, on the basis of
Interlake Corp. v. Commissioner, 112 T.C. 103 (1999), and the
consolidated return regulation in effect when the tentative
refunds were paid in 1987, section 1.1502-78(b)(2), Income Tax
Regs., the former common parent of an affiliated group is not
authorized to receive the tentative refunds on the group’s
behalf.
What petitioner is trying to do in the case at hand is
litigate the merits of an issue the parties have already settled.
Despite petitioner’s entry into the stipulation, petitioner
apparently views our opinion in Interlake as providing an
argument too good to pass up. In any event, petitioner’s
argument is wrapped in a jurisdictional challenge, so we must
consider jurisdiction. After we explain why we have jurisdiction
to enter a decision based on the stipulation, we shall explain
why the tentative refunds were rebates insofar as petitioner is
concerned.
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