Union Carbide Corporation v. Commissioner of Internal Revenue

This is an appeal from a judgment of the Tax Court, Theodore Tannenwald, Jr., J., barring the Commissioner from asserting a deficiency against Union Carbide Corporation (Carbide) for its 1971 tax year. In his decision, reported at 75 T.C. 220 (1980), Judge Tannenwald found that the Court of Claims’ decision in Union Carbide Corp. v. United States, 612 F.2d 558 (1979), estops the Commissioner from arguing that Treas. Reg. § 1.1502-25(c) is valid and applicable to reduce Carbide’s 1971 consolidated foreign tax credit under § 1503(b)(1) of the Internal Revenue Code, 26 U.S.C. § 1503(b)(1). In…