Central Pa. Sav. Ass'n v. Commissioner
United States Tax Court
During the taxable years at issue, P deducted additions to its bad debt reserve utilizing the percentage of taxable income method set forth in sec. 593(b)(2)(A), I.R.C.
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During the taxable years at issue, P deducted additions to its bad debt reserve utilizing the percentage of taxable income method set forth in sec. 593(b)(2)(A), I.R.C. In its calculations of taxable income for this purpose, P did not take into account net operating losses (NOL's) as provided in sec. 1.593-6A(b)(5)(vi) and (vii), Income Tax Regs.Held: Upon reconsideration, we no longer adhere to our prior holdings that such regulation is invalid; P must take NOL's into account in computing its taxable income under sec. 593(b)(2)(A), I.R.C., as required by such regulation. Georgia Federal Bank…
1DissentHalpern, J.
I dissent because I am not persuaded that, in the words of the majority, “we should accede to the decision of the three Courts of Appeals and should no longer adhere to the view that the new regulation is invalid.” Majority op. p. 397.
The majority sets the stage for acceding in the following terms:
The critical difference between us and the Courts of Appeals turns on whether we were correct in our conclusion that the legislative history contained such a clear expression of legislative intent as to justify the conclusion that the regulation in question was unreasonable. * * * [Majority op. p.…
2Cases cited8 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Lawrence v. CommissionerUnited States Tax Court · 1957
- Lardas v. CommissionerUnited States Tax Court · 1992
- Arthur L. Lawrence and Alma P. Lawrence v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1958
- Golsen v. CommissionerUnited States Tax Court · 1970
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