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carryovers from 1990 and 1991 with losses for 1992 to arrive at a
1992 NOL carryover of $323,352, which he subsequently applied to
his 1994 individual return. Petitioner provided nothing more
than his 1990 and 1991 individual income tax returns as proof of
the 1990 and 1991 NOLs. Petitioner did not produce his books and
records for the affected years or any other documentation to
substantiate the claimed losses. Respondent specifically asked
for such documentation in his Request for Production of Documents
(document request), which he served on petitioner in March 1999.
At trial, petitioner offered conflicting testimony regarding
whether or not he had provided substantiation for the NOL
carryovers. Initially, he said that he did not supply records to
respondent substantiating his 1990 and 1991 NOLs after petitions
were filed in these cases, because he did not recall receiving
respondent’s document request. Next, he said that he failed to
produce the requested documentation because he did not have
records going back that far. Finally, petitioner claimed that he
did not provide respondent with the requested documentation
before trial because he had given it to the Internal Revenue
Service agent in connection with the 1992 audit, and the agent
had not returned it.
A tax return is merely a statement of the taxpayer’s claim
and does not establish the truth of the matters set forth
therein. Wilkinson v. Commissioner, 71 T.C. 633, 639 (1979).
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