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substantially prevailed with respect to either the amount in
controversy or the most significant issue or set of issues
presented.
We consider first whether petitioner prevailed with respect
to the amount in controversy.
Petitioner asserts that he substantially prevailed with
respect to the amount in controversy because he ultimately became
entitled to a refund in the amount of $90,136 for 1992. However,
petitioner conceded that he was liable for an increased
deficiency for 1992, and the refund for 1992 results only from
the application of a net operating loss carryback from 1993 to
1992. In this regard, section 301.7430-5(d), Proced. & Admin.
Regs., provides:
Amount in controversy. The amount in controversy
shall include the amount in issue as of the
administrative proceeding date as increased by any
amounts subsequently placed in issue by any party. The
amount in controversy is determined without increasing
or reducing the amount in controversy for amounts of
loss, deduction, or credit carried over from years not
in issue. [Emphasis added.]
Notably, petitioner would not have been entitled to a refund
without filing amended returns for 1993 and 1994, which amended
returns had not been filed until about 20 months after the
petition in this case had been filed and after the parties had
filed a stipulation with respect to all issues before the Court.
Given that petitioner conceded an increased deficiency and
that his refund results from a carryback from a year not before
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