- 3 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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