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As to the amount of the bribes, petitioner testified at
trial that he paid $312,572 to Cooper in bribes during the
subject years. We do not find this testimony credible.3 The
credible evidence in this case persuades us, and we have found as
a fact, that petitioner paid Cooper $90,286 in bribes during the
subject years. On the basis of the record, we also are satisfied
that 50 percent of this amount was attributable to 1985 and that
the rest was attributable to 1986. We conclude and hold that
petitioner’s gross income, as adjusted by respondent in the
notice of deficiency, should be decreased by $45,143 in both 1985
and 1986.
Petitioner argues that he had an NOL in 1988 that he may
carry back to the years at bar. Petitioner asserts: (1) He
reported on his 1988 Federal income tax return the income that he
realized from the false invoice scheme, (2) he amended that
return in 1996 to account for respondent’s position that the
income was actually taxable in 1985 and 1986, and (3) his removal
of that income from 1988 generated an NOL for that year.
The record does not adequately support petitioner’s
assertion that he realized an NOL in 1988. Although section
172(a) allows taxpayers to deduct an NOL equal to the sum of NOL
3 Nor do we find credible the vague, unsupported testimony
of petitioner to the effect that he indirectly paid General
Motors Co. a $15,000 bribe. In contrast with the bribes paid to
Cooper, the record does not adequately support petitioner’s bald
assertion that he indirectly bribed General Motors Co.
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