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(July 18, 1988). The taxpayer is required to file a new Form
8594 in the tax year that such modification is properly taken
into account. Id. Petitioner presented no evidence to show that
a new Form 8594, or anything substantially similar, was filed to
reflect the desired changes in the allocation value.
Petitioner's reasons for failure to file a new Form 8594 are
unclear.
Without a new Form 8594 or any other legal or factual
justification allowing a modification, we see no reason to
allocate $0 to the Kaibab covenant not to compete. See Hosp.
Corp. of Am. v. Commissioner, T.C. Memo. 1996-559. Petitioner,
therefore, is not entitled to change the value it allocated to
the Kaibab covenant not to compete.
As a result, the Court holds that petitioner is entitled to
recognize the losses on its covenants not to compete for FYE
March 31, 1996, and to its deduction for a net operating loss
carryback for FYE March 31, 1993.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
for petitioner.
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