- 8 -
made effective as of January 1, 1993. Ms. Tidwell notified Mrs.
Dugan that the effective date of the election was contrary to the
date of the intended election and her understanding of NTI's
status when she prepared the Forms 1120S for NTI. Ms. Tidwell
also advised Mrs. Dugan that the disagreement with respondent
with respect to the effective date of NTI's S corporation
election needed to be resolved.
At some point after the August 25, 1992, letter was sent,
NTI's copies of respondent's April 9, 1991, letter and the date
stamped Form 2553 were apparently misfiled and could not be
located. On September 24, 1993, Ms. Tidwell sent a letter on
behalf of NTI to respondent requesting a copy of respondent's
April 9, 1991, letter. Neither Ms. Tidwell nor NTI received a
response to this letter.
On September 24, 1993, Mrs. Dugan filed a bankruptcy
petition in the U.S. Bankruptcy Court for the Middle District of
Tennessee. The Dugans filed their 1992 joint Federal income tax
return on October 18, 1993, on which they claimed a passthrough
loss deduction of $154,855 from NTI.
By letter dated November 1, 1993, Ms. Sanford notified NTI
that the 1992 Form 1120S could not be processed. The contents of
this letter were similar to the contents of her August 3, 1992,
letter to NTI regarding its 1991 Form 1120S. NTI did not respond
to respondent's November 1, 1993, letter.
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