General Dynamics Corp. v. United States

This suit, for the recovery of interest paid on alleged deficiencies in plaintiffs (General Dynamics) 1958 and 1959 federal income tax, presents a novel and knotty issue. *371Stated in full, the question is whether deficiencies properly subjected to interest charges1 arose in plaintiffs 1958 and 1959 federal income tax returns when, in 1961, plaintiff changed from claiming a foreign tax credit2 to claiming foreign taxes paid as a deduction3 from its taxable income *372for 1958 and 1959 in order to obtain maximum benefit of a net operating loss carryback4 arising in 1961. In essence, however, the…