Refund to Certain Fiduciaries of Insolvent Members of Affiliated Groups

ID:
UILC:
CCA_2013080813454917
6402.03-02
[Third Party Communication:
Date of Communication: Month DD, YYYY]
Number: 201402008
Release Date: 1/10/2014
From: ---
Sent: Thursday, August 08, 2013 1:45:49 PM
To: ---
Cc: ---
Bcc:
Subject: Advice
For the Year 1 tax year, CP, the common parent of a consolidated group, filed a tentative refund request based on a two-year carryback of the CNOLs of the group for that year. Fiduciary made a five-year extended carryback election for those same losses. The Service Center issued a tentative refund to CP with respect to its request.
For the Year 2 tax year, CP made a five-year extended carryback election for the
CNOLs of the group for that year. Fiduciary filed a document attempting to “reverse” its previous five-year extended carryback election for Year 1 and elect a five-year extended carryback for the Year 2 tax year as well.
Both Fiduciary’s five-year extended carryback election for Year 1 and CP’s five-year extended carryback election for Year 2 were timely, but only one can be accepted.
Fiduciary has executed a Form 870 agreeing to its initial five-year extended carryback election for Year 1, but the Service has not executed the Form 870 and the agreement is pending ---.
The field has asked whether the Service can exercise its broad discretion under §
301.6402-7(f) to accept the filings by CP (request for a two-year carryback of the
CNOLs of the group for the Year 1 tax year and the five-year extended carryback election of the CNOLs of the group for the Year 2 tax year) and not accept the filings by Fiduciary (its initial five-year extended carryback election of the CNOLs of the group for the Year 1 tax year). We advise that the Service may do so.