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the assessment plus additions to tax, fees, and accrued interest
and issued a refund check.
On October 8, 1991, petitioners filed another Form 1040X for
taxable year 1985 (second amended return) and sought to carry
back the remainder of the NOL from 1988 and part of their NOL
from 1987. Respondent returned the second amended return and
advised petitioners that NOLs, arising in different taxable
years, must be carried back on separate Forms 1040X.
In response to respondent's letter, Mr. Kevin Wulff,
petitioners' accountant, prepared two separate Forms 1040X for
1985. One return carried back part of the NOL from 1987 and
reflected an overpayment of $65,937 (third amended return). The
other return carried back the NOL from 1988 and increased
petitioners' alternative minimum tax by $72,747 (fourth amended
return). In addition, Mr. Wulff prepared an amended return for
taxable year 1984, carrying back the balance of the NOL arising
in 1987 and reflecting an overpayment of $56,956 (fifth amended
return).
Petitioners included the overpayments on line 23 (refunds to
be received) of the third and fifth amended returns. Neither
return included a statement requesting that the overpayments be
applied to petitioners' additional liability of $72,747, which
was reflected in the fourth amended return. Mr. Wulff, however,
prepared a cover letter addressed to respondent indicating his
intention to call and request that the overpayments from the
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