Georgia-Pacific Corporation v. United States

HUG, Circuit Judge:

Georgia-Pacific Corp. appeals from the dismissal of its tax refund suit. Georgia-Pacific claimed that it was entitled under Int.Rev.Code § 631(b) to long-term capital gains treatment on the sale of standing timber. The district court held that under Treas.Reg. § 1.1502-13(c)(4), governing affiliated corporations filing consolidated tax returns, Georgia-Pacific was required to treat the gain as ordinary income. Georgia-Pacific contends on appeal that the regulation is not applicable because the transaction was not a “deferred intercompany transaction” and the purchaser was…