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Petitioner’s 1990 and 1991 individual returns do not, by
themselves, adequately substantiate the 1990 and 1991 NOLs.
Petitioner’s explanations for the lack of any further
substantiation are contradictory and incredible. We hold,
therefore, that petitioner did not meet his burden of proof
regarding the 1990 and 1991 NOL carryovers to 1992 and 1994. See
McWilliams v. Commissioner, T.C. Memo. 1995-454.
Even if petitioner had provided the requested documentation,
he did not elect to relinquish the NOL carrybacks from 1990,
1991, and 1992. Under the general rule, the 1990 NOL first
should have been carried back to 1987, 1988, and 1989 before
being carried forward to 1991. Sec. 172(b)(1) and (2).
Similarly, the 1991 NOL should have been carried back to 1988,
1989, and 1990, and the 1992 NOL should have been carried back to
1989, 1990, and 1991. Petitioner stated on the record that no
elections under section 172(b)(3) were filed for any of the
affected years. In addition, there is nothing in the record that
provides any basis from which we could determine the amounts of
the 1990, 1991, and 1992 NOLs that were absorbed in the years
before 1990, the earliest year for which a tax return was
included in the record. Accordingly, petitioner has not shown
that he is entitled to deductions under section 172 for taxable
years 1992 and 1994. See Welch v. Commissioner, T.C. Memo. 1998-
121, affd. 204 F.3d 1228 (9th Cir. 2000).
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