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their gross income in other years did not offset those losses.
See Jones v. Commissioner, 25 T.C. 1100, 1104 (1956), revd. and
remanded on other grounds 259 F.2d 300 (5th Cir. 1958).
Dan Mitchell, petitioners’ return preparer, testified that
petitioners’ tax returns show that they are entitled to NOL
carryforwards and carrybacks and investment tax credit
carryforwards. Tax returns alone do not establish that a
taxpayer is entitled to NOL carryforwards or carrybacks or
investment tax credit carryforwards. See Wilkinson v.
Commissioner, 71 T.C. 633, 639 (1979); Roberts v. Commissioner,
62 T.C. 834, 837, 839 (1974). Petitioners offered no other
evidence about their NOL carryforwards or carrybacks or
investment tax credit carryforwards. We conclude that
petitioners may not claim NOL carryforward or carryback
deductions or investment tax credits carried forward to the years
in issue.
G. Whether Petitioners Are Liable for the Addition to Tax for
Late Filing
Petitioners contend that they are not liable for the
addition to tax under section 6651(a)(1) for their failure to
file timely their income tax returns for each year in issue
because: (1) They correctly reported that there was no tax due
for the years in issue, (2) they had reasonable cause to file
their returns late because petitioner had problems keeping office
staff who could provide the necessary information to help prepare
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