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before 1998, the first year in issue, and that respondent
determined in the notice of deficiency that the 15-year carryover
period had expired, we cannot fathom how petitioners could
otherwise establish their entitlement to deduct any part of the
subject NOL carryovers were they not to substantiate the
composition of those carryovers.
Petitioners have made no attempt to substantiate their
claimed deductions of NOL carryovers,6 and the record does not
establish that any portion of an NOL that petitioners incurred
before 1998 was applied properly to 1998 or 1999. Petitioners
must prove not only that they had an NOL in a year before 1998,
but that a portion of an NOL was properly deductible in 1998
and/or 1999. See Jones v. Commissioner, supra; see also sec.
6001; sec. 1.6001-1(a), (e), Income Tax Regs. (taxpayers must
keep sufficient records to establish the amount of any item
reported on their Federal income tax returns). Although
petitioners have consistently attempted to manifest on their tax
returns for at least 1988 through 1999 that they were carrying
over NOLs to those returns, these representations are not enough
for petitioners to meet their burden.7 Wilkinson v.
6 Petitioners, for example, have failed to introduce any
evidence establishing the years in which they purportedly
incurred NOLs or the amount of those purported NOLs.
7 In fact, petitioners calculated incorrectly the amounts of
those represented NOL carryovers; e.g., petitioners included in
(continued...)
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