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Petitioner now claims that this $8,275 should be allowed to him
as an additional capital loss for 1990.
On his 1991 individual Federal income tax return, petitioner
did not reflect the $47,391 that he paid to New York State and to
the United States relating to the sales and employment tax
liabilities of his S corporations. Petitioner now claims that
this $47,391 should be allowed to him as an additional capital
loss for 1991.
The parties now agree that the payments of $8,275 in 1990
and the total of $47,391 in 1991 that petitioner made regarding
the delinquent sales and employment tax liabilities of his
S corporations represent additional capital contributions to
petitioner’s S corporations and an increase in petitioner's bases
in his stock of the S corporations. Respondent, however,
disallows the claimed capital losses relating thereto on the
grounds that petitioner has established neither his bases in nor
the worthlessness of his stock in the S corporations. Respondent
also has imposed the additions to tax under sections 6651(a)(1),
6654, and 6662(a) with respect to which petitioner contests only
the additions to tax under section 6651(a)(1) for late filing his
tax returns.
OPINION
Payments made by shareholders on behalf of corporations
generally increase the shareholders’ stock bases in the
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