DocketNumber: Docket No. 3912-90
Citation Numbers: 69 T.C.M. 2317, 1995 Tax Ct. Memo LEXIS 140, 1995 T.C. Memo. 149
Judges: TANNENWALD
Filed Date: 4/4/1995
Status: Non-Precedential
Modified Date: 11/21/2020
*140 An appropriate order will be issued and decision will be entered under Rule 155.
MEMORANDUM OPINION
TANNENWALD,
*141 Summary judgment is appropriate in this case because there is no genuine issue of material fact, and the decision can be made as a matter of law. Rule 121(b);
Petitioner is a mutual savings and loan association with its principal place of business in Philadelphia, Pennsylvania. During the years at issue, petitioner was an institution described in section 593(a)(1), and filed Federal income tax returns on a calendar year basis with the Internal Revenue Service, Philadelphia, Pennsylvania.
For its 1980 tax year, petitioner claimed an NOL within the meaning of section 172(c), which it carried back to certain tax years from 1970 to 1979. Petitioner also claimed NOL's in subsequent years that affect certain of the years at issue herein. 3 The carryback of the 1980 NOL resulted in the carryback of investment tax credits to petitioner's 1968 and*142 1969 tax years. Petitioner timely filed Corporation Applications for Tentative Refund (Form 1139) for all tax years affected by the NOL carrybacks and related investment tax credit carryovers and carrybacks.
During certain tax years from 1968 to 1981, petitioner calculated the annual addition to its reserve for bad debts under the percentage of taxable income method provided in section 593(b)(2)(A) and deducted this addition in each such tax year on its Federal income tax returns in accordance with section 166(c). In conjunction with petitioner's filing its tentative refund applications stemming from its carryback of the 1980 NOL, petitioner recomputed its allowable bad debt deductions under the percentage of taxable income method for*143 the affected years in accordance with the then existing
Subsequent to the filing of the tentative refund applications, respondent conducted an examination of petitioner's tax returns for the 1968 through 1981 tax years. Following the examination, respondent mailed petitioner a notice of deficiency disallowing petitioner's treatment of two items not now at issue herein and determining the following deficiencies in petitioner's Federal income tax:
Year | Deficiency |
1969 | $ 25 |
1970 | 19,940 |
1971 | 37,336 |
1972 | 62,864 |
1973 | 77,340 |
1974 | 59,825 |
1975 | 67,230 |
1976 | 24,998 |
1977 | 1,550 |
1978 | 13,887 |
1980 | 143,432 |
1981 | 1,064 |
Thereafter, in 1990, this Court held
Petitioner thereafter, without objection by respondent, amended its petition herein to raise the issue of the application of
The issues which were the subject of respondent's notice of deficiency having been settled, the validity of the regulation presents the sole remaining issue for our decision. 4
Petitioner argues that based on the established principles of stare decisis and the absence of a controlling decision in the Court of Appeals for the Third Circuit, see
The foregoing positions of the parties are the same as those presented in
Petitioner's motion for summary judgment will be denied, and respondent's cross-motion for summary judgment will be granted.
1. This case was reassigned to Judge Tannenwald↩ pursuant to an order of the Chief Judge.
2. All statutory references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.↩
3. The Court may consider NOLs in years not at issue where they are carried back to years that are in issue.
4. This Court retains jurisdiction to determine an overpayment for the years at issue even though the deficiencies asserted in respondent's notice of deficiency have been settled. Sec. 6512(b);