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In Young, the Court held that a taxpayer is required to
attach a separate statement with the requisite information to the
return itself. The Court held further that the taxpayers' lack
of taxable income for the return year did not constitute such a
separate statement. The Court stated:
That petitioners reported no taxable income for 1976
indicates nothing concerning either the existence or
the extent of a net operating loss for that year, or
any intention to carry the net operating loss forward
or backward. * * * [Fn. ref. omitted.]
Id. at 837. The Court stated further that the taxpayers' entry
on the Form 4625 attached to the 1976 return "[indicated] nothing
with respect to the amount of a 1976 net operating loss, or [the
taxpayers'] intent to relinquish the carryback period for such
loss." Id.
Here, petitioner did not comply with the express
requirements of section 172, and the regulations thereunder, for
1985, 1986, and 1987 to relinquish the carryback of the net
operating losses sustained for these years. Petitioner did not
attach a separate statement to either her 1985, 1986, or 1987
return, or to her amended return for 1987, for the required
election under section 172(b)(3)(C).6
6
Moreover, even if the 1987 amended return contained an
election, the election would be ineffective or invalid. In Young
v. Commissioner, supra, this Court concluded that the taxpayer's
(continued...)
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