- 7 -
1978 Tax Year
Petitioner had a tax liability of $6,608,807 for the 1978
tax year,8 not reflecting the effect of any carrybacks from
subsequent years. Between April 17, 1978, and October 12, 1979,
petitioner made payments totaling $3,633,741 against this
liability, leaving a deficiency of $2,975,066.
In 1979, there arose an FTC and an ITC, as discussed above.
None of the 1979 FTC was carried back to 1978, and $444,727 of
the 1979 ITC was carried back. Thus, as of January 1, 1980,
petitioner had a 1978 tax liability of $2,530,339.
In 1982, there arose, as discussed above, an NOL which was
carried back to 1979, eliminating tax liability for 1979 and
releasing the FTC and ITC which had arisen in that year. Of the
released 1979 FTC, $1,971,695 was carried back to 1978. Because
of the effect of the carryback of this FTC, petitioner was
precluded by section 46 from using the ITC carried back from
1979, which was then carried forward to 1981, a year not at
issue. When adjusted for additional payments and credits of
$79,925, petitioner had a tax liability for 1978, as of March 15,
1983, of $1,464,568.
The deficiencies and interest amounts involved were assessed
for both years by respondent and fully paid by petitioner. In
8 This liability reflects an ITC that arose in 1978 and
was used in 1978.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011