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6211(a), the amount of a deficiency for a taxable year is
increased by the amount of any rebates for such taxable year.
In an amendment to answer, respondent asserted increased
deficiencies in tax for petitioner’s taxable years 1994, 1995,
and 1996 on the ground that petitioner was not entitled to
petitioner’s tentative refunds. The Court stated in Transp.
Labor Contract/Leasing, Inc. & Subs. v. Commissioner, 123 T.C. at
155 n.2:
Our resolution of the issue remaining for decision
will resolve the issues that respondent raised in the
amendment to answer relating to the disallowance of an
NOL carryback that petitioner claimed from its taxable
year 1997.
Having held in Transport Labor I that the section 274(n)(1)
limitation applied to the per diem amounts that TLC paid to its
driver-employees, it was necessary, in order to calculate the
correct amounts of the deficiencies for petitioner’s taxable
years 1994, 1995, and 1996, respectively, to add the amount of
the tentative refund for each such taxable year to the amount of
the deficiency that respondent had determined in the notice for
each such year. Sec. 6211(a) and (b). That was the computation
to which the Court understood the parties to be referring in the
parties’ stipulation of facts. That computation, which the Court
made, was a straightforward calculation under section 6211(a) and
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