Centennial Sav. Bank FSB v. US, Civ. A. No. 3-86-1396-H.
| Decision Date | 04 August 1987 |
| Docket Number | Civ. A. No. 3-86-1396-H. |
| Citation | 670 F. Supp. 195 |
| Parties | CENTENNIAL SAVINGS BANK FSB, Plaintiff, v. UNITED STATES of America, Defendant. |
| Court | U.S. District Court — Northern District of Texas |
Edward Koppman and Kathleen St. John, Akin Gump Strauss Hauer & Feld, Dallas, Tex., for plaintiff.
Walter B. Thurmond, Grover Hartt, III, Tax Div., U.S. Dept. of Justice, Dallas, Tex., for defendant.
Before the Court are Plaintiff's Motion for Summary Judgment, filed May 8, 1987, and Defendant's Memorandum in Opposition, filed May 28, 1987, together with supporting materials filed by the parties. Plaintiff brought this suit seeking a refund of federal income taxes and interest. In its motion Plaintiff contends that Defendant's assessment of the taxes and interest was barred by the statute of limitations. The Court concludes that Plaintiff's Motion should be DENIED.
The following facts are undisputed. On Plaintiff's tax return for taxable year 1981, Plaintiff reported a net operating loss that Plaintiff carried back to taxable years 1969, 1970, and 1972 through 1980. The carryback resulted in an overpayment of taxes for those years. Plaintiff filed claims for "tentative" refunds for those years using a form that permits a taxpayer quickly to obtain a refund of taxes for a previous year after incurring a net operating loss. Defendant disbursed the claimed refunds to Plaintiff. Subsequently, the Internal Revenue Service examined Plaintiff's tax return for 1981, and by letter dated September 14, 1983 informed Plaintiff of its conclusion that Plaintiff was not entitled to the refunds.
On December 6, 1984, Plaintiff executed a Form 872 entitled "Consent to Extend the Time to Assess Tax." By this form Plaintiff agreed that "The Amount of any Federal Income Tax due on any return(s) made by or for Plaintiff for the period (s) ended December 31, 1981, may be assessed at any time on or before December 31, 1985" (emphasis added). On June 12, 1985 the Service issued a notice of deficiency in which the Service disallowed the net operating loss claimed by Plaintiff for 1981 and stated its intention to recover the tentative refunds paid for the carryback years. Defendant issued a formal assessment on November 5, 1985, and Plaintiff repaid the refunds.
In Plaintiff's Motion it argues that the assessment was barred by the statute of limitations because the assessment was for amounts attributable to the carryback years, 1969, 1970, and 1972 through 1980, but the consent form executed by Plaintiff concerned only tax due for 1981. The Court disagrees.
Section 6501(a) of the Internal Revenue Code sets forth the general rule of a three-year limitations' period for assessments of tax deficiencies. Section 6501(h) states one of several exceptions. That section provides that in the case of a deficiency attributable to the application of a net operating loss carryback, the...
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Centennial Sav. Bank FSB v. U.S., 88-1297
...which asserted that the federal government's assessment of taxes and interest were barred by limitations. Centennial Savings Bank FSB v. United States, 670 F.Supp. 195 (N.D.Tex.1987) (order denying summary judgment). Centennial now appeals that ruling on two First, Centennial contends that ......
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... ... Civ. A. No. 84-2200-LC ... United States District Court, W.D ... ...
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Calumet Indus., Inc. & Subsidiaries v. Comm'r of Internal Revenue
...period for the fiscal year ended June 30, 1981, the critical year under section 6501(h). See generally Centennial Savings Bank FSB v. United States, 670 F. Supp. 195 (N.D. Tex. 1987); see also Pesch v. Commissioner, 78 T.C. 100, 134 n.57 (1982). Respondent, on the other hand, simply argues ......