Bobby E. Welch - Page 18

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                    year.  The statement required * * * shall                         
                    indicate the section under which the election                     
                    is being made and shall set forth information                     
                    to identify the election, the period for                          
                    which it applies, and the taxpayer's basis or                     
                    entitlement for making the election.                              

          Sec. 301.9100-12T(d), Temporary Proced. & Admin. Regs., 57 Fed.             
          Reg. 43893 (Sept. 23, 1992) (redesignating sec. 7.0, Temporary              
          Income Tax Regs., 42 Fed. Reg. 1469 (Jan. 7, 1977) ("Various                
          elections under the Tax Reform Act of 1976")).                              
               Petitioner must first establish that he suffered an NOL for            
          the taxable year 1984.  To meet this burden petitioner relies on            
          a purported retained copy of his 1984 return that was prepared by           
          Mr. Moore.  That return shows an NOL from petitioner's sole                 
          proprietorship "Bob Welch Electric" in the amount of $146,058 and           
          an NOL carryforward in the amount of $4,907.  Respondent has no             
          record of the return's being filed and disputes the amount of the           
          NOL claimed.  For the purpose of discussion only, we are willing            
          to assume that the return was timely filed and accurately                   
          reflects the loss.  Petitioner, however, still faces the problem            
          that there is no statement attached to the return identifying               
          that an election has been made.  Indeed, there is no evidence               
          that any election to relinquish the carryback was ever made.                
          Thus, under the general rule, the 1984 NOL would be carried back            
          to the 1981, 1982, and 1983 taxable years and carried forward to            
          the 1985 taxable year before it would be carried forward to any             
          of the years before the Court.  There is nothing in this record             




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