Parviz Lavi and Madeline Lavi - Page 4

                                        - 4 -                                         
          claimed NOL deductions unrelated to petitioners' investment in              
          Arbitrage Management constitute an impermissible new issue.                 
               Petitioners note that certain alternative computations that            
          respondent made and exchanged with petitioners (of a proposed               
          settlement of the Arbitrage Management adjustments) reflected               
          that the NOL's that petitioners now claim might be available as             
          carryback loss deductions in computing petitioners’ taxable                 
          income for 1979 and 1980.  Petitioners argue therefrom that                 
          respondent was on notice of the claimed NOL's and that                      
          petitioners’ claim, at this time, to such carryback loss                    
          deductions for 1979 and 1980 should not be treated as raising a             
          new issue.  To the contrary, the record indicates that the 1981             
          and 1982 claimed NOL's were reflected in respondent’s proposed              
          alternative settlement computations on the basis and on the                 
          condition that petitioners’ 1981 and 1982 tax years were open for           
          statute of limitation purposes for the filing of claims for                 
          refund and for audit by respondent.  When it was established that           
          petitioners had not timely filed claims for refund for 1981 and             
          1982 and that those years were closed for both the filing of                
          claims for refund and audit purposes, petitioners’ entitlement to           
          such claimed NOL's disappeared, and the claimed losses were                 
          properly eliminated from respondent’s proposed computations.                
               The mere fact that respondent, in a case, may be aware                 
          generally of claimed NOL's arising in later years not before the            
          Court does not put respondent, or the Court, on notice that such            




Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011