U.S. Court of Appeals for the Ninth Circuit, 1974

Olympic Foundry Company, a Washington Corporation v. United States

U.S. Court of Appeals for the Ninth Circuit · Decided January 29, 1974 · Per Curiam

493 F.2d 1247; 33 A.F.T.R.2d (RIA) 700; 1974 U.S. App. LEXIS 10327 (Federal Reporter, Second Series)

Counsel

Scott P. Carmpton, Asst. Atty. Gen., Tax Div., Darrell D. Hallett, Trial Atty., Meyer Rothwacks, Thomas L. Stapleton, Richard Farber, U. S. Dept, of Justice, Tax Div., Washington, D. C., Charles W. Billinghurst, Asst. U. S. Atty., Stan Pit-kin, U. S. Atty., Tacoma, Wash., for defendant-appellant., Gerald R. Hergert, of Trethewey & Brink, Seattle, Wash., for plaintiff-ap-pellee.

Cases that cite this one

6 later published cases cite this decision.

Mutual Assurance Society of Virginia Corporation v. Commissioner of Internal Revenue (4th Cir. 1974)
United States v. Foster Lumber Co. (Supreme Court of the United States 1976)
Georgia International Life Ins. Co. v. Commissioner (United States Tax Court 1983)
In the Matter of Avien, Inc., Debtor. The City of New York v. Avien, Inc. (2d Cir. 1976)
Sidney Axelrod and Andrea Axelrod v. Commissioner of Internal Revenue (6th Cir. 1975)
Foster Lumber Company, Inc. v. United States (8th Cir. 1974)

This list shows which later cases cite this one. It does not say how they treated it, and no review of that has been done. Not a substitute for Shepard’s or KeyCite — verify before relying.

Opinion

OPINION

Before CHAMBERS and SNEED, Circuit Judges, and BURNS, * District Judge.

PER CURIAM:

The Government seeks to reverse the District Court’s holding that where in a preceding year the alternative method of computing corporate income tax provided in Int.Rev.Code of 1954, § 1201 is utilized, the excess of the taxpayer’s net operating loss deduction carried back from a later year over its ordinary income in such preceding year may be carried forward to succeeding years under Int.Rev.Code of 1954, § 172, even though the amount of the net operating loss deduction in said preceding year is less than the sum of the total of taxpayer’s ordinary and capital gain income for that year.

This issue has been consistently decided against the Government. Chartier Real Estate Co., 52 T.C. 346 (1969), aff’d, 428 F.2d 474 (1st Cir. 1970); Mutual Assurance Society of Virginian Corp., 32 T.C.M. 839 (1973); Sidney Axelrod, 32 T.C.M. 885 (1973); Naegele v. United States, 73-2 U.S.Tax Cas. ¶9696.

All of the arguments pressed by the Government in the instant' case were rejected by these cases. We adopt the position of the First Circuit, the Tax Court and that of the District Court. Accordingly, the judgment is affirmed.

Honorable James M. Burns, United States District Judge, District of Oregon, sitting by designation.

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