- 61 - the continuation of the prespinoff affiliated group; Interlake, as a result of the restructuring and spinoff, became the common parent of a new affiliated group. Even if respondent’s concession that Interlake was the common parent were correct as a matter of law, which we doubt, the treatment of petitioner as the common parent was based on the regulations as they applied to the facts of the restructuring. See supra pp. 33-37. In other words, any error of respondent was an error in his interpretation of the consolidated return regulations, not an error in performing his clerical responsibilities that would give rise to nonrebate refunds. Rebate v. Nonrebate Refunds Other cases applying the rebate/nonrebate distinction provide further support for the result we arrive at. The cases addressing the rebate/nonrebate distinction illustrate that, even though respondent’s payment of the tentative refunds may have been erroneous, it was not the sort of error that leads to a nonrebate characterization. As we have said, rebate refunds are refunds paid because of a substantive recalculation by the taxpayer or Commissioner that the tax due is less than the amount shown on the return. O’Bryant v. United States, 49 F.3d at 342. Nonrebate refunds, on the other hand, are issued because of mistakes, typically clerical or computer error, that are invariably made by the Commissioner. Id.Page: Previous 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 Next
Last modified: May 25, 2011