related penalty under section 6662(d) in the amount of $7,359.60. The deficiency results from the disallowance of the carryover of a net operating loss (NOL) of petitioner husband Douglas E. Kahle (Mr. Kahle) from the 1990 taxable year. The issue for decision in this case is whether petitioners may use the NOL to reduce income in the year in which petitioners filed for personal bankruptcy. Based on our decision with regard to this issue, we will have to decide whether petitioners are liable for the addition to tax for delinquent filing and an accuracy-related penalty for substantial understatement of tax liability. Background This case was submitted fully stipulated under Rule 122. The stipulation of facts and attached exhibits are incorporated herein by this reference and found accordingly. Petitioners are married individuals filing jointly, and resided, at the time the petition in this case was filed, in Virginia Beach, Virginia. Their 1991 return was filed delinquently on April 9, 1993, with the Internal Revenue Service at Norfolk, Virginia. On December 6, 1991, Mr. Kahle filed a voluntary bankruptcy petition under chapter 7 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court, Eastern District of Virginia, Newport News 1(...continued) the Internal Revenue Code in effect for the taxable year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011