Melvin J. Laney and Carolyn A. Laney - Page 1

                                       T.C. Memo. 1997-403                                            


                                     UNITED STATES TAX COURT                                          


                   MELVIN J. LANEY AND CAROLYN A. LANEY, Petitioners v.                               
                        COMMISSIONER OF INTERNAL REVENUE, Respondent                                  


                  Docket No. 24510-90.              Filed September 11, 1997.                         


                        Petitioners (Ps) claimed on the Schedule C of                                 
                  their 1983 tax return a $16.3 million “theft/casualty”                              
                  loss.  Ps carried forward this loss as a net operating                              
                  loss to their 1986, 1987, and 1988 tax returns.  Ps                                 
                  contend they are entitled to the claimed deductions,                                
                  even if the deductions are not otherwise allowable,                                 
                  because of a settlement agreement with the Department                               
                  of Justice in connection with a suit in the Court of                                
                  Claims.  Ps also contend that they had a binding                                    
                  settlement agreement with the Internal Revenue Service                              
                  in the instant case, allowing a net operating loss of                               
                  more than $0.5 million.                                                             
                        1. Held: Ps did not have a settlement agreement                               
                  with either the Department of Justice or the Internal                               
                  Revenue Service.                                                                    
                        2. Held, further, Ps are not entitled to loss                                 
                  carryover deductions on account of theft, casualty, or                              





Page:   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