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reflected on their 1991 through 1994 joint Federal income tax
returns. Petitioners argue that through a reconstruction of
their records they have adequately established and substantiated
the claimed NOL carryovers. Petitioners also assert that under
section 108 only a small portion of the claimed NOL carryovers
would be eliminated.
With limited exceptions, petitioners' Federal income tax
returns and records relating to 1980 through 1989 were not
introduced into evidence. Petitioners' testimony is inconsistent
and not credible. Based on the evidence, we hold that
petitioners have not met their burden of substantiating the
claimed NOL carryovers, and we sustain respondent's disallowance
thereof.
Apparent copies of petitioners' Federal income tax returns
for 1980, 1987, and 1988 are in evidence and show claimed NOL's.
No further books and records or credible evidence, however,
support the claimed NOL's.
Petitioners allege that copies of their income tax returns
were stolen from their rental storage unit. Petitioners' report
of the theft, however, did not indicate any loss of petitioners'
income tax returns or records.
Petitioner testified that his mother had custody of records
relating to the farm and to petitioners' oil and gas activities
and that petitioners' reconstruction of their income tax returns
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