- 5 - an asserted 1975 NOL. Respondent did not audit these returns, and, consequently, respondent did not disallow or adjust the NOL carryforward deductions claimed on the returns. Petitioners filed Federal income tax returns for 1998 and 1999 in which they carried forward and deducted for each year an asserted 1975 NOL. In a notice of deficiency dated June 29, 2001, respondent disallowed these deductions for 1998 and 1999 in the amounts of $122,892 and $128,801, respectively. Respondent also disallowed deductions for charitable contributions for 1998 and 1999 in the amount of $420 for each year. On September 26, 2001, petitioners filed a timely petition contesting respondent’s determinations. In their petition, petitioners allege that they “disagree with the deficiencies” and “are entitled to NOL carryforward from a bankruptcy case closed in 1993.” OPINION I. NOL Carryforward Deductions Petitioners4 contended at trial that, in addition to the NOLs claimed by the bankruptcy trustee on Forms 1041, an NOL of $1,517,999 from 1975,5 which the bankruptcy trustee never 4Only Mr. Beery appeared and testified at trial. Mr. Beery represented, however, that he was acting on behalf of himself and his wife (petitioners in this case) with her full knowledge and approval. 5Petitioners’ income tax returns for 1998 and 1999 reflect (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011