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were made to the pay phones that were assigned to him, and he did
not know the cost of these modifications.
Petitioner claimed a $4,875 tax credit for 2000, a $4,875
tax credit for 2001, and a $2,375 tax credit for 2002 on Forms
8826, Disabled Access Credit, with respect to the pay phones,
that were attached to his Federal income tax returns for the
years in issue.
Alpha Telcom grew rapidly through its pay phone program but
was poorly managed and ultimately operated at a loss. On August
24, 2001, Alpha Telcom filed for bankruptcy under chapter 11 of
the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern
District of Florida. The matter was later transferred to the
U.S. Bankruptcy Court for the District of Oregon on September 17,
2001. On July 26, 2002, petitioner filed a proof of claim in the
bankruptcy court in the amount of $90,000, representing the
$90,000 that he had invested.2 The bankruptcy matter was
dismissed on September 10, 2003, by motion of Alpha Telcom. The
bankruptcy court held that it was in the best interest of
creditors and the estate to dismiss the bankruptcy matter so that
proceedings could continue in Federal District Court, where there
2 Petitioner’s $90,000 payment represented the amount he
paid for a total of 18 pay phones. Petitioner purchased 7 pay
phones from ATC, in addition to the 11 pay phones petitioner had
previously purchased from ATC. Petitioner did not claim a sec.
44 credit for the additional 7 pay phones. Those pay phones are
not before the Court.
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Last modified: May 25, 2011