The Black & Decker Corporation v. Commissioner of Internal Revenue

OPINION

ERVIN, Chief Judge:

The Black & Decker Corporation, a domestic corporation with principal offices in Towson, Maryland, suffered a loss on its foreign investment in Nippon Black & Decker (“NBD”), during its 1981 tax year when NBD stock became worthless. Black & Decker attempted to offset this loss against its taxable income in the form of a foreign tax credit. In 1988 the Commissioner of Internal Revenue mailed Black & Decker a notice of deficiency in its corporate income tax paid. The deficiency resulted from the Commissioner’s upward adjustment of Black & Decker’s net foreign-source…