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On petitioner's original Form 1120 for the taxable year
ending June 30, 1991, petitioner reported a loss of $11,877.
Petitioner included with the original return its election to
waive the carryback period for the reported loss.
On petitioner's amended Form 1120X for the taxable year
ending June 30, 1991 (filed on or about April 20, 1994),
petitioner reported a loss of $79,007.
Discussion
Respondent determined that petitioner did not make a timely
election to waive the carryback period on the amended return for
the tax year ending June 30, 1992. Petitioner asserts that it
did make a valid election to relinquish the carryback period with
respect to its net operating loss for the tax year ending June
30, 1992.
In general, section 172 allows a deduction for an amount
equal to the aggregate of the net operating loss carryovers to a
taxable year plus the net operating loss carrybacks to that year.
See sec. 172(a). Section 172(b), as in effect for the years at
issue, required that a net operating loss first be carried back
to each of the 3 previous taxable years and, if it was unabsorbed
by those years, that the remaining portion be carried forward to
the 15 following taxable years. See sec. 172(b)(1) and (2).
Section 172(b)(3), however, provides that a taxpayer may
elect to relinquish the entire carryback period and carry forward
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