- 11 -
year NOL”, relating to alleged NOL’s for 1994 and 1995.3
At trial, petitioner did not introduce one iota of
evidence that she incurred a net operating loss in 1994. This
failure alone is sufficient to bar any deduction under section
172 for either of the years in issue. See Myers v.
Commissioner, T.C. Memo. 1995-329, affd. without published
opinion 99 F.3d 1135 (5th Cir. 1996); see also Halle v.
Commissioner, 7 T.C. 245 (1946) (a taxpayer’s return is not
self-proving as to the truth of its contents), affd. 175 F.2d
500 (2d Cir. 1949); Caruso v. Commissioner, T.C. Memo. 1966-190
(same). Assuming arguendo that petitioner incurred a net
operating loss in 1994, petitioner failed to demonstrate that
the NOL was not fully absorbed in a year(s) to which she was
required to carry it back or that petitioner properly elected
to relinquish the entire carryback period and instead carry the
loss forward. See sec. 172(b)(1)(A), (b)(3); Gerstenberger v.
Commissioner, T.C. Memo. 2001-50 n.7.
In view of the foregoing, we sustain respondent’s
determination and hold that petitioner is not entitled to any
NOL deduction in either 1995 or 1996.
3 It should be recalled that petitioner reported a net loss
on her 1995 return. However, our disposition of the disputed
issues for 1995 eliminates any loss for that year. Accordingly,
we need only decide whether petitioner incurred an NOL in 1994,
and, if so, whether such loss may be carried forward to 1995
and/or 1996.
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