- 11 -
Petitioners did not understand the nature of the partnership
losses, the farming losses, or the general business credits at
the time they signed their returns and the Form 1045, but they
did not seek advice concerning these items.
Respondent issued petitioners a notice of deficiency
reflecting the deficiencies and additions to tax as heretofore
set forth in detail. The underlying deficiencies in 1984 and
1985 are based solely on respondent’s disallowance of the general
business credit that petitioners sought to carry back to those
years using the Form 1045. The underlying deficiencies in 1987,
1988, and 1989 are based on respondent’s disallowance of the
Schedule F losses, and on computational adjustments to
petitioners’ itemized deductions resulting from these Schedule F
adjustments. The Schedule F losses were disallowed on several
grounds, including respondent’s determination that petitioners
did not meet the “at risk” requirements of section 465. The
general business credits also were disallowed on several grounds,
including respondent’s determination that the underlying property
did not meet the requirements of section 46(c)(8). The
partnership loss claimed by petitioners in 1987 was not
disallowed in the notice of deficiency because respondent
determined it to be a partnership item subject to the provisions
of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L.
97-248, 96 Stat. 324. Based on the above adjustments, respondent
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011