Regal, Incorporated v. Commissioner of Internal Revenue

The issues here presented are succinctly stated by the Tax Court as follows:

“The Commissioner determined a deficiency in the income tax of petitioner for the taxable year ended January 31, 1965 in the amount of $64,347.39. At issue is whether petitioner and its subsidiaries were required to file a consolidated Federal income tax return for their taxable year ended January 31, 1965 solely because they elected to file a consolidated Federal income tax return for the previous taxable year.”

Appellant Regal, Inc. claims that Treasury Regulation 1.1502-11A is invalid. 1 This regulation provides,…