Nibur Building Corporation, and Its Wholly Owned Subsidiary, Ralston Steel Corporation v. Commissioner of Internal Revenue

SPRECHER, Circuit Judge.

This is an appeal from a decision of the Tax Court finding deficiencies in taxpayers’ federal income tax for the taxable years 1959 and 1960 in the amounts of $8,968.60 and $30,337.69 respectively. The question turns upon the interpretation of applicable carryback provisions of the consolidated return regulations.

Taxpayers are Nibur Building Corporation (“Nibur”) and its wholly owned subsidiary Ralston Steel Corporation (“Ralston No. 2”). Prior to March 7, 1961, Nibur was known as Ralston Steel Corporation (“Ralston No. 1”). On March 7, 1961, its name was changed to…