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decided, based on the particular facts of that case, not to
exercise our discretion under Rule 41(a) in petitioners' favor.
As indicated, respondent relies on Bob Hamric Chevrolet,
Inc. v. United States, 849 F. Supp. 500 (W.D. Tex. 1994), for the
proposition that an NOL adjustment is properly treated as an
affected item subject to computational adjustment.
In Bob Hamric Chevrolet, Inc. v. Commissioner, supra, the
taxpayer reported a partnership loss in 1982 of $199,813.85
reflecting the taxpayer's distributive share of a loss incurred
by a TEFRA partnership for that year. Due to limitations imposed
under the "at-risk" rules, the taxpayer claimed a loss of
$100,000 on its 1982 income tax return, and carried the balance
of the loss forward to 1983 to offset its distributive share of
income from the TEFRA partnership for that year in the amount of
$86,518. As a result, the taxpayer claimed a net partnership
loss for 1983 of $12,596.
Following an examination of the TEFRA partnership by the IRS
for 1982 and 1983, the taxpayer entered into a settlement
agreement reducing its distributive share of partnership loss for
1982. In this regard, the settlement agreement provided that the
taxpayer's distributive share of partnership loss for 1982 would
be reduced from $199,813.35 to $69,934.67. The settlement
agreement also provided that the taxpayer's distributive share of
partnership income for 1983 would remain unchanged.
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