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that the first eight quarterly payments were to cover FPCF's
first four assessments while the remaining quarterly payments
covered the fifth through the eighth assessments. The settlement
agreement, however, clearly states that the payment schedule
corresponds to the fifth through the eighth assessments.
We cannot determine, based upon the record before us, the
amount of the payments made by petitioner to the FPCF, or the
years to which these payments correspond whether they are taxable
or tax-exempt years. Accordingly, we find that petitioner has
failed to meet its burden of proof and is not entitled to a
judgment as a matter of law with respect to the deductibility of
payments it made to the FPCF.
3. Net Operating Loss
Petitioner contends that it sustained a net operating loss
in the amount of $706,522 for taxable year 1983. Petitioner
filed a Form 990, Return of Organization Exempt From Income Tax,
rather than a Form 1120, Corporate Income Tax Return, with
respect to 1983, according to petitioner, because at the time of
the filing petitioner was recognized as a tax-exempt
organization. Petitioner argues that had a Form 1120 been filed
the $706,522 loss would have been shown as a net operating loss
for taxable year 1983.
Petitioner contends that the alleged loss of $706,522
satisfies the definition of a net operating loss under section
172(c) and (d) as it is the amount by which its gross income in
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