National Forge & Ordnance Company v. United States

WHITAKER, Judge.

This is an action to recover income and excess profits taxes paid for the fiscal year ending July 31, 1945.

In the fiscal year ending in 1946 the taxpayer sustained a net operating loss. Under the statute, it is permitted to carry back this net operating loss to reduce the income, first, of the second preceding taxable year, and, second, to the immediately preceding taxable year, etc. After the net operating loss has been applied against the income for the second preceding taxable year, the excess is then applied to the immediately preceding taxable year. Hence, in order to…