Larry J. and Patricia A. Sumrall - Page 12

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          comply with sec. 301.6402-3(a)(2), Proced. & Admin. Regs., and              
          make such claims by filing Forms 1040X for 1989 and 1990.                   
          Nevertheless, petitioners claim that they filed “timely, valid[,]           
          informal claims” to carry back their 1992 NOL to 1989 and 1990:             
          “Petitioners informal claims for * * * 1992 consist of oral and             
          written communications with Respondent, which placed Respondent             
          on notice that Petitioners were claiming net operating losses in            
          * * * 1992.”  Respondent answers that petitioners’ oral and                 
          written communications did not constitute adequate notice that              
          petitioners were requesting refunds and, thus, do not constitute            
          informal claims for refund.                                                 
               B.  Discussion                                                         
                    1.  Informal Claims                                               
               It is well established that an informal claim for refund               
          (i.e., one that does not comply with the formal requirements of             
          the statute and regulations) will suffice as long as it requests            
          a refund and fairly advises respondent of the nature of the                 
          taxpayer’s claim.  United States v. Kales, 314 U.S. 186, 194                
          (1941).  As we summarized in Turco v. Commissioner, T.C. Memo.              
          1997-564:  There are no bright line rules as to what constitutes            
          an informal claim.  Rather, each case must be decided on its own            
          particular set of facts.  The relevant question is whether                  
          respondent knew or should have known that a refund claim was                
          being made.  Also, an informal claim must have some written                 

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