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that petitioners had erroneously calculated their tax liability
for 1983 using the tax rates applicable to married individuals
filing separately, when instead petitioners were entitled to the
rates for married individuals filing jointly. The Service Center
recomputed petitioners' 1983 tax, which reduced their tax
liability for that year by the amount of $4,654. This correction
resulted in an increase in the carryback of the investment credit
to the 1980 tax year in the amount of $4,546 and a carryforward
of $108 of the credit to 1981. The amounts of $4,546 and $108
were thereafter paid to petitioners as tentative refunds. In the
notice of deficiency, respondent failed to include the $4,546
tentative refund for 1980 as part of the deficiency in tax for
1980, and the amended answer sought an increase in the deficiency
in tax for that year from $2,822 to $7,368 to reflect the
subsequent tentative refund for that year and to correspondingly
increase the additions to tax to $368 and $2,120, respectively,
under sections 6653(a) and 6659(a), and the increased interest
under section 6621(c). The Court granted respondent's motion.2
The issues for decision are: (1) Whether petitioners are
entitled to claimed losses and investment tax credits with
respect to James L. Connell's (petitioner) investment in 1983 in
2
Since petitioners' 1981 tax year is not before the Court,
the increased deficiency claimed by respondent does not include
the tentative refund of $108, which was paid to petitioners as a
carryforward of the credit to 1981.
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