Valero Energy Corporation and Subsidiaries v. Commissioner of Internal Revenue

KING, Circuit Judge:

The original majority opinion and dissent in this case, Valero Energy Cory. v. Commissioner, 75 F.3d 1006, 1007 (5th Cir.1996), are withdrawn and the following majority opinion and dissent are substituted in their place:

Taxpayer corporation filed a petition in the tax court contesting the Internal Revenue Service’s determination that taxpayer had overstated its 1984 net operating loss by taking a double deduction for payments made pursuant to a settlement agreement. The tax court affirmed the determination, concluding that the deduction was correctly disallowed. Taxpayer…