- 15 - 4(b)(1), Income Tax Regs. The record does not contain one iota of credible evidence that petitioners had a reasonable basis for claiming the disputed NOL carryforward deductions or that they acted in good faith by doing so. Petitioners ignored our 1996 decision in Beery I, which held that petitioners cannot carry forward and apply an NOL from 1975 to offset their taxable income for years beyond 1980, when they prepared and filed their 1998 and 1999 returns. Petitioners continued to dispute the validity of Beery I and continued to deduct an asserted 1975 NOL carryforward over a period of several years, including the years at issue. Petitioners’ entire course of conduct reflects a determined effort to claim undocumented and/or unuseable NOL carryforwards from 1975 over a period of many years while ignoring applicable law and relevant facts. Petitioners’ intransigence does not qualify as reasonable cause for the 1998 and 1999 underpayments. We sustain respondent’s determination regarding the section 6662 penalties. We have considered the remaining arguments of petitioners for results contrary to those expressed herein and, to the extent not discussed above, find those arguments to be irrelevant, moot, or without merit.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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