Faramarz Fayeghi and Shelli Fayeghi - Page 12

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          petitioners have failed to pay the tax reported due on their                
          original 1990 return, and respondent's rejection of their amended           
          return, there is no basis for finding an abatement, credit, or              
          refund in this case.                                                        
               Petitioners' reliance on Powerstein v. Commissioner, supra,            
          likewise is misplaced.  In Powerstein v. Commissioner, supra, the           
          Commissioner issued a notice of deficiency to the taxpayers for             
          the taxable years 1984 through 1988.  After filing a petition               
          with the Court, and after the Commissioner filed an answer, the             
          taxpayers filed amended returns for the years in dispute in an              
          apparently misguided effort to generate a net tax refund.  The              
          Commissioner accepted the amended returns in which the taxpayers            
          reported increased tax liabilities and rejected the amended                 
          returns in which the taxpayers reported reduced tax liabilities.            
          Under the particular facts of that case, we concluded that the              
          Commissioner had erred in treating the increased taxes reported             
          in the amended returns as amounts "shown upon his return" within            
          the meaning of section 301.6211-1(a), Proced. & Admin. Regs.  To            
          the contrary, we held that the additional taxes represented                 
          amounts that the taxpayers were "protesting rather than                     
          admitting" within the meaning of the same regulation.  Id. at               
               The facts presented in the instant case are readily                    
          distinguishable from those presented in Powerstein v.                       

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