- 4 - grounds that petitioner's income was not derived primarily from farming. In its written order, with regard to petitioner's claimed 1975-NOL, the District Court expressly stated that, if all creditors' claims were considered valid, petitioner's farming, grain, and other business activities incurred the 1975- NOL of $1,517,999. Petitioner appealed the decision of the District Court, and on May 14, 1982, the U.S. Court of Appeals for the Tenth Circuit affirmed the District Court's decision to deny petitioner's claim that he was exempt as a farmer from the chapter 7 bankruptcy proceeding. In re Beery, 680 F.2d 705, 717 (10th Cir. 1982). Prior to July 16, 1986, respondent determined and assessed a deficiency of $1,178,012 in petitioners' 1975 joint Federal income tax, plus interest and penalties. On July 16, 1986, however, respondent, pursuant to a Request For Adjustment (Form 3870) that had been filed by petitioners, redetermined petitioners' 1975 joint Federal income tax and abated the assessment from $1,178,012 to zero, eliminating the interest and penalties. The record herein does not explain respondent's action in abating the $1,178,012 tax deficiency assessed against petitioners for 1975, although respondent's action apparently relates to the 1975-NOL that was established in the course of petitioner’s chapter 7 bankruptcy proceeding. On October 5, 1987, petitioner filed in the Bankruptcy Court a motion to stay all bankruptcy proceedings and to enjoin anyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011