Larry J. and Patricia A. Sumrall - Page 16

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          undoubtedly had knowledge of the years under examination, but               
          petitioners did not tell him that the subsequent year from which            
          a loss would carry back was 1992, or identify the year or years,            
          among those under examination to which the loss would be carried            
          back, or, more importantly, give him any particulars of that loss           
          other than that it was expected to be based on the cost of goods            
          sold used in the criminal case against petitioner.  To constitute           
          a claim for refund, a taxpayer must give the Commissioner                   
          adequate notice of the grounds, including the factual basis, for            
          the claim before the expiration of the period of limitations so             
          that the Commissioner can, if he wishes, initiate an examination            
          of the bona fides of the claim.  See Estate of Mueller v.                   
          Commissioner, 107 T.C. 189, 213 (Beghe, J., dissenting), affd.              
          153 F.3d 302 (6th Cir. 1998); see also Am. Radiator & Standard              
          Sanitary Corp. v. United States, 162 Ct. Cl. 106, 318 F.2d 915,             
          920 (1963).3  Petitioners did not, through the June 18                      
          conversation, give respondent adequate notice that they had                 
          claims for refund or of the grounds underlying such claims.                 

               3  The facts of this are distinguishable from those of Am.             
          Radiator & Standard Sanitary Corp. v. United States, 162 Ct. Cl.            
          106, 318 F.2d 915, 921 (1963), in which the Court of Claims found           
          an informal claim for refund with respect to retroactive                    
          inventory adjustments where the revenue agent had knowledge of              
          the taxpayer’s desire for a refund, the approximate total amount            
          of the refund expected, and the cost of the later year inventory            
          replacement giving rise to the earlier year adjustments and                 
          refunds.  The equivalent of that last component is missing in               
          this case.                                                                  

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