Opinion
Case No. SACV 01-752 GLT(MLGx)
September 20, 2002
DEBRA W. YANG, United States Attorney, EDWARD M. ROBBINS, JR., Assistant United States Attorney Chief Tax Division, SANDRA R. BROWN, Assistant United States Attorney, Los Angeles, CA; Attorneys for the United States of America.
JAMES M. KAMMAN, LAW OFFICES OF JAMES M. KAMMAN, APC, Attorneys for Plaintiff Ronald Moran Cadillac, Inc.
JUDGMENT IN FAVOR OF THE UNITED STATES OF AMERICA
The parties' Cross-Motions For Summary Judgment came on for hearing before the Court, the Honorable Gary A. Taylor, United States District Judge, presiding. Noting that neither of the parties seek the Court's determination on Count Two of the Complaint for various reasons, the Court accordingly treats both motions as motions for summary adjudication. Based upon the parties' Joint Statement of Uncontrovetted Facts and Exhibits, the Court's Order On Cross-Motions For Summary Adjudication,, and good cause appearing therefor,
IT IS ORDERED AND ADJUDGED:
1. That, based upon the differing recoveries and the application of the failure to pay penalties resulting from the utilization of a NOL carryback from 1994 versus 1995, plaintiff's 1994 NOL carryback claim is not moot even though the IRS has conceded the 1995 NOL carryback claim;
2. That plaintiff is not entitled to the $1,049,657 in interest deductions claimed in this action for 1994 by virtue of the application of 26 U.S.C. § 267(a)(2), and hence, plaintiff did not incur a net operating loss of $810,267 for the year 1994;
3. That plaintiff is only entitled to $261,663.00 in interest deductions for 1994, and hence, plaintiff only incurred a net operating loss of $22,273 for the year 1994;
4. That the United States of America's cross-motion for summary adjudication of issues as to Count One of the Complaint is Granted;
5. That plaintiff's cross-motion for summary adjudication of issues as to Count One of the Complaint is Denied;
6. That, in light of the IRS's concession of the 1995 NOL carryback claim (Count Two of the Complaint) and the Court's granting of the government's motion for summary adjudication of the 1994 NOL carryback claim (Count One of the Complaint), there are no issues remaining before this Court;
7. That, pursuant to the IRS's concession of the 1995 NOL carryback claim (Count Two of the Complaint), plaintiff has an overpayment of $39,217.83 for its 1992 taxable year which is to be credited to the plaintiff pursuant to 26 U.S.C. § 6402; and,
8. This Judgment disposes of all issues in this complaint and action.