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refunds for 1978, 1979, and 1980 based upon a carryback of the
unused 1981 ITC. In each respective year, a credit in the amount
of $4,053, $4,610, and $6,209 was applied, resulting in a tax
liability of zero, $223, and $949, and refunds of $3,834, $4,420,
and $6,025.
The combined wage income reported on the joint returns filed
by petitioner for taxable years 1978, 1979, 1980, and 1981
totaled $151,564. After filing the 1981 return and the Form
1045, petitioner’s claimed total tax liability for these four
years was $1,172. The refunds reflected on the return and the
Form 1045 totaled $22,536.
Petitioner signed both the 1981 joint return and the Form
1045. Petitioner reviewed the 1981 return before signing it.
Petitioner, however, did not ask Mr. Barnes or Mr. Hoyt, or any
independent tax adviser, how the $29,520 loss was calculated.
Nor did petitioner make any inquiries concerning how such a loss
could be generated when she and Mr. Barnes had not invested any
cash in the partnership as of that date.
After auditing RCR #1, respondent disallowed the partnership
loss claimed by RCR #1 in 1981. In the notice of deficiency
underlying this case, respondent determined the deficiencies and
additions to tax listed in detail above, based upon the
disallowance of RCR #1's 1981 partnership loss and the related
ITC carryback from 1981 to 1978, 1979, and 1980.
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