T.C. Memo. 2003-297 UNITED STATES TAX COURT NICHOLAS J. AND DIANE L. PALIHNICH, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent Docket No. 10591-00. Filed October 23, 2003. Petitioners (Ps) claimed deductions relating to White Rim, a limited partnership in which they owned an interest in 1980-83. Respondent (R) determined that Ps were not entitled to deduct losses from White Rim. In 1987, Ps filed amended returns for 1981-82. Without Ps’ knowledge, R lost those returns for almost 11 years. In March 1998, R found and processed those amended returns. If R had timely processed those returns, overpayments from 1985-87 and a refund from 1982 would have been available to pay Ps’ 1980 tax liability. Ps believed in 1987 that, as a result of tax payments they had made and carrybacks to which they were entitled, they had paid all or substantially all of the amounts R said Ps owed for 1980-83. R abated interest for 1981-82 that accrued while the returns were lost, but did not abate interest for 1980. Ps filed a claim for R to abate interest on their income tax liability for 1980 and additionalPage: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
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