- 4 - the investment credit of $45,824 as well as a deduction of $90,174 which they had claimed as their share of a partnership loss. They reported additional tax due in the amount of $57,459. On their amended return for 1986 they recalculated their tax liability, deleting a deduction of $162,008 which they had claimed as their share of a partnership loss, and reported additional tax due of $19,257. They supplied the following explanation for these adjustments on both returns: We have been advised that the I.R.S. is auditing the tax return of Ethanol Partners Ltd 59-2548638 Registration #8605000826 and wish to reverse the loss and credits taken on this return for Ethanol Partners in order to stop the interest charges. The amended returns were not accompanied by a Form 8082, Notice of Inconsistent Treatment or Amended Return. Petitioners have never made payment of the additional tax liability shown on the amended returns. The additional taxes were assessed on April 9, 1992. On December 18, 1992, petitioners filed a petition for bankruptcy under chapter 7 of the Federal Bankruptcy Code with the U.S. Bankruptcy Court for the Southern District of Florida. Respondent did not file a proof of claim with the bankruptcy court, and the court did not make a determination of petitioners’ tax liability. Petitioners received a bankruptcy discharge pursuant to 11 U.S.C. section 505 on May 17, 1993. On December 16, 1993, respondent timely mailed to petitioners a notice of deficiency for the 1984 and 1986 taxable years. The deficiencies were determined on the basis of aPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011