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NOL's are going to be claimed as carryback loss deductions to
years that are in dispute in a case. Generally, taxpayers are
under an affirmative obligation to raise specifically such
claimed carryback loss deductions as an issue so that respondent
and the Court can timely consider the merits thereof. Rule
34(b)(4). Lewis v. Commissioner, 90 T.C. 1044, 1051-1053 (1988).
After 9 years of negotiating tax adjustments relating to
Arbitrage Management, petitioners and their counsel agreed to the
July 7, 1995, settlement stipulation, and petitioners now are not
entitled to disavow the stipulation and to raise as new issues
for their 1979 and 1980 tax years unrelated claimed NOL's from
1981 and 1982.
The record is clear that respondent's settlement position,
of which petitioners, through counsel, were aware, provided that
where the settlement reflected a netting in a single year of
adjustments relating to a particular tax shelter from a number of
years, increased interest under section 6621(c) was to apply to
100 percent of the tax deficiency on the net adjustments, not to
just 50 percent of the tax on such adjustments. Increased
interest under section 6621(c) is to be applied against 100
percent of petitioners' income tax deficiency for 1979.
For the reasons stated, the Court will enter respondent’s
proposed decision.
Decision will be entered
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