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Appeals officer’s determination, the taxpayer may appeal the
determination to the Tax Court. Sec. 6330(d)(1).
Petitioner has asked us to prevent respondent from
proceeding to collect the assessments by levy because respondent
failed to allow petitioner alleged deductions, even though
petitioner (1) never claimed the deductions in a tax return,4 and
(2) apparently agreed, in the Forms 4549-CG that he signed, that
respondent could disallow the deductions and assess the resulting
deficiencies without allowing petitioner an opportunity to
dispute the assessments in this Court.
Notwithstanding his failure to claim the deductions in a
return for any year before the Court and his explicit waivers of
the right to challenge respondent’s determinations for the years
1990 through 1993, petitioner has sought to challenge the
4As best we can discern against the background of
respondent’s disallowances of losses petitioner claimed on his
1992 and 1993 returns that respondent determined had been
incurred by Horn Enterprises, petitioner now wishes to claim
losses for some year or years from worthlessness of his stock and
debt interests in Horn Construction and Horn Enterprises.
Insofar as petitioner wishes to claim deductions for “Expenses
paid by the taxpayer for the taxpayer’s corporation Horn
Construction [that] were never allowed”, petitioner’s payments of
such expenses would be disallowed as deductions and treated as
capital contributions or loans that he only could recover as
worthless stock or debt losses, see, e.g., Betson v.
Commissioner, 802 F.2d 365, 368-371 (9th Cir. 1986), affg. on
this issue T.C. Memo. 1984-264; Gantner v. Commissioner, 91 T.C.
713, 725 (1988), unless he showed he had paid such expenses to
protect his own trade or business, see, e.g., Gould v.
Commissioner, 64 T.C. 132, 134-135 (1975); Jenkins v.
Commissioner, T.C. Memo. 1983-667.
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