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penalties for the short tax year of February 23 through December
31, 1995, and the tax years 1996 and 1997, as follows:
Accuracy-related
Addition to tax penalty
Year Deficiency Sec. 6651(a)(1) Sec. 6662
19951 $75,771 - $15,154
1996 240,565 – 48,113
1997 249,337 $57,967 46,374
1 Pursuant to sec. 1398(d)(2)(D), petitioner elected to
terminate his tax year as of the bankruptcy commencement date,
Feb. 23, 1995. The deficiency is with respect to the short tax
year of Feb. 23 through Dec. 31, 1995.
All section references are to the Internal Revenue Code in
effect for the tax years in issue, and all Rule references are to
the Tax Court Rules of Practice and Procedure, unless otherwise
indicated.
In a prior opinion, concerning respondent’s motion for
partial summary judgment, we considered certain legal questions
that affected petitioner’s ability to apply, on his tax returns,
unused net operating losses (NOLs) from his bankruptcy
proceeding. See Benton v. Commissioner, 122 T.C. 353 (2004)
(Benton I). Among other things, in Benton I, we held that:
(1) The “termination” of petitioner’s chapter 11 bankruptcy
proceeding, for purposes of section 1398, occurred on August 31,
1997, upon confirmation of the plan and discharge of the debtor;
and (2) generally, NOLs not used or absorbed by his bankruptcy
estate may be applied by petitioner against his income for his
tax years in issue, to the extent allowed under section 172 and
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