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Net Operating Loss Deductions
On their 1988 and 1989 Federal income tax returns,
petitioners claimed net operating loss carryforwards (NOL’s) of
$25,450 and $8,108, respectively. Respondent disallowed $16,390
of the 1988 NOL and all of the 1989 NOL after determining that
petitioners had failed to carry back the losses before carrying
them forward, as required by section 172(b)(1)(A) and (2).
Respondent recalculated the NOL’s, which resulted in most of the
NOL’s being absorbed in earlier years.
At trial, petitioners presented no evidence regarding this
issue. On brief, petitioners state that their “only objection
to Respondent’s requested adjustment involves the amount of net
operating lose [sic] actually used for the years in question.”
Conceding that some reduction in their claimed NOL’s is
appropriate, petitioners argue, with little elaboration, that
“The exact amount of that reduction would be less than the [sic]
claimed by the respondent.”
Having failed to present evidence to overcome respondent’s
determinations to reduce their allowable NOL’s, petitioners have
failed to carry their burden of proof regarding this issue. See
Rule 142(a); Golub v. Commissioner, T.C. Memo. 1999-288.
Accordingly, we sustain respondent’s determinations.
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Last modified: May 25, 2011