§346 — Definition and special rule

However, all of those cases either began as chapter 7 liquidations or were converted from - 21 - chapter 11 reorganizations to chapter 7 liquidations and are thus distinguishable from the current case. In addition, the question of whether a “termination” occurred before the closing of the estate was not squarely presented in any of those cases. Section 346(i)(2) of the Bankruptcy Code, like section 1398, provides for the succession of tax attributes from the estate to the debtor in cases under

- 9 - We hold that a bankruptcy petition filed by an S corporation does not cause the corporation to cease being a “small business corporation” or otherwise terminate its status as an S corporation.

Unlike situations 1 and 2, situation 3 does not involve a sec. 332 liquidation entailing a carryover of tax attributes under sec. 381. See also Rev. Rul. 79-184, 1979-1 C.B. 143, involving a parent’s sale of the stock of its wholly owned subsidiary followed by a distribution (pro rata) of the sales proceeds to the shareholders of the parent in partial redemption of their stock. Analogizing the facts of that ruling to the facts of situation 3 of Rev. Rul. 75-223, Rev. Rul. 79-184, 1979-1 C.B. at

Under former section 346, a distribution in partial redemption of the stock of a corporation is considered to be made in partial liquidation of the corporation if the distribution is on account of “the [distributing] corporation’s ceasing to conduct, or consists of the assets of, a trade or business * * * [actively conducted throughout the prior 5-year period a

346(i)(2) (1976); see also Firsdon v. United States, 95 F.3d 444, 446 (6th Cir. - 22 - 1996); McGuril v. Commissioner, T.C. Memo. 1999-21; Beery v. Commissioner, T.C. Memo. 1996-464, we hold that he was not entitled to claim personally in the subject years a deduction for an NOL that arose prior to the estate’s commencement; see sec. 1398(g);

346(i)(2) (1976); see also Firsdon v. United States, 95 F.3d 444, 446 (6th Cir. - 22 - 1996); McGuril v. Commissioner, T.C. Memo. 1999-21; Beery v. Commissioner, T.C. Memo. 1996-464, we hold that he was not entitled to claim personally in the subject years a deduction for an NOL that arose prior to the estate’s commencement; see sec. 1398(g);

Held, further, the interest on the deficiency amounts eliminated by the carryback from 1981 stops accruing as of the end of 1981, and the interest on the deficiency amount eliminated by the carryback from 1982 stops accruing as of the due date of the 1982 return. Cf. sec. 6611(g) (now sec. 6611(f)(2)), I.R.C. 1954, prior to and after the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97-248, sec. 346(c), 96 Stat. 637. Joel V. Williamson, Wayne S. Kaplan, Thomas L. Kittle-Kamp, Marjori

346 (a) "not extreme y well-drafted" but clear enough to make subsectio applicable "only to State a loca la United States, _ . __ We hold that the period applicable to the äarrying forward of petitioners' 1975-NOL expired on-December 31, 1980, and was not affected or suspended by.petitioner's bankruptcy proceeding. Petitioners argue that respo

346(i)(2) (1978); see also Firsdon v. United States, 95 F.3d 444, 446 (6th Cir. 1996), affg. 75 AFTR 2d 95-528, 95-1 USTC par. 50,040 (N.D. Ohio 1994); Beery v. Commissioner, T.C. Memo. 1996- 464. The debtor is then free to use the net operating loss as a carryover, sec. 1398(i), or carryback, as long as the net operating loss arose before the

172(b)(1) provides that an NOL for any taxable year shall be carried back to each of the 3 taxable years preceding the loss year.