Martin-Marietta Corporation v. The United States

The solution to this case lies in one’s evaluation of the scope and purpose of Section 1481 of the 1954 Code. The court applies subsection (a), but then, taking subsection (b) strictly and literally, finds that Congress has made no provision for a case like this in which the renegotiation affects loss-years or years in which there can be no tax “credit” (in the strict use of that term). Therefore, the court holds, the ordinary rules as to interest must apply (after subsection (a) has had its effect). My difference with the court is that I think that Congress intended Section 1481, as a whole,…