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Petitioner offered several prior years tax returns and
schedules which attempted to explain his claimed NOL deduction.
A tax return is merely a statement of the taxpayer’s claim and
does not establish the truth of the matters set forth therein.
Wilkinson v. Commissioner, 71 T.C. 633, 639 (1979). Petitioner’s
prior years tax returns do not, by themselves, adequately explain
the claimed NOL deduction. Additionally, petitioner’s schedules
also failed to substantiate his claimed NOL deduction. Triplett
v. Commissioner, T.C. Memo. 2001-320, affd. 53 Fed. Appx. 339
(6th Cir. 2002). For instance, in calculating his NOL deduction,
petitioner did not apply the applicable carryback rule of section
172(b)(1) to the prior taxable years. Petitioner did not elect
to waive the applicable carryback period with respect to any of
the prior taxable years. Petitioner testified that the carryback
requirement was “something I haven’t been aware of.” While
petitioner’s schedules attempted to explain how he computed his
NOL deduction, his explanation makes no sense. Accordingly, we
find that petitioner is not entitled to an NOL deduction under
section 172 for the taxable year 1998 in excess of that allowed
by respondent.
Finally, we must consider whether petitioner is allowed
credits for excess Social Security and Medicare taxes withheld
from his wages.
The Federal Insurance Contributions Act (FICA), ch. 736, 68A
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