Opinion ID: 1349870
Heading Depth: 1
Heading Rank: 5

Heading: conclusion

Text: Although 26 U.S.C. § 1341(a) was designed to allow certain taxpayers relief from having paid taxes on income it subsequently is required to pay to a third party, see Alcoa, 509 F.3d at 177, subsection (b)(2) restricts the availability of a § 1341(a) computation. We read § 1341(b)(2) as plainly prohibiting the use of a § 1341(a) computation by an entity other than a public utility with respect to any amount which was included in its gross income in a prior taxable year by reason of the sale or other disposition of stock in trade or inventory. Our reading of the statute is compelled by its plain language, its logic, its lack of any limitation on the definition of inventory, and the presence of the final sentence of subsection (b)(2). Accordingly, the district court's grant of summary judgment in favor of Texaco is VACATED and the case is REMANDED to the district court for the entry of judgment in favor of the government. [9]