Swallows Holding, Ltd. - Page 137

                                        -93-                                          
          deadline constitutes the same filing deadline as would have                 
          applied under Taylor Sec., Inc. and its progeny.                            
               For a category 2 corporation that files its tax return                 
          after the 18-month period but before respondent notifies the                
          taxpayer, the 18-month filing deadline of the regulation would              
          apply, and the regulation represents a shortening of the filing             
          deadline that would have applied under Taylor Sec., Inc. and its            
          progeny.                                                                    
               In effect, the filing deadline set forth in section 1.882-             
          4(a)(3)(i), Income Tax Regs., significantly incorporates and                
          reflects aspects of the filing deadline of Taylor Sec., Inc. and            
          its progeny, but it shortens that deadline to no later than 18              
          months after the due date of the current year tax return, and it            
          lengthens that deadline to 18 months after the tax return due               
          date for a foreign corporation that filed a tax return for the              
          prior year and that received notification from respondent prior             
          to filing its tax return.1                                                  
               As is evident, contrary to the majority opinion’s                      
          contention that section 1.882-4(a)(2) and (3)(i), Income Tax                

               1  I regard the notification to foreign corporations                   
          described in sec. 1.882-4(a)(3)(i), Income Tax Regs. (that no tax           
          return has been filed for the current year and that no deductions           
          or credits under sec. 882(c)(2) will be allowed), as not                    
          materially different from the notification mentioned in Taylor              
          Sec., Inc. v. Commissioner, 40 B.T.A. 696 (1939), and its progeny           
          (that respondent has prepared a substitute tax return or issued a           
          notice of deficiency in which a corporation’s deductions and                
          credits under sec. 882(c)(2) were not allowed).                             





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