- 10 - Year Target Alofs Excellence 1993 $113,311 -- -- 1994 245,886 $401,192 $312,699 1995 (616,947) 296,614 807,012 1996 (800,000) -0- -- Included with the 1996 Schedule E was a statement pertaining to Target and a statement pertaining to Alofs indicating that the figures reported were projected amounts in that returns for the entities had not yet been filed due to recent bankruptcy. For years 1993, 1994, and 1995, petitioners also included on Schedules B, Interest and Dividend Income, taxable interest from Schedules K-1. Subsequently, petitioners submitted joint Forms 1040X, Amended U.S. Individual Income Tax Return, signed in September of 1998, for 1993, 1994, and 1995. Each of these amended returns was based on the carryback of a net operating loss (NOL) from 1996, eliminated petitioners’ taxable income for the respective periods, and requested substantial refunds. Attached to each Form 1040X was a “pro forma” Form 1040 for 1996 and supporting schedules showing the genesis of the NOL.3 As relevant here, the principal differences between the original 1996 return and the pro forma version were the inclusion of an additional $7,043 of taxable interest and the reporting of a loss from Schedule E of 3 It is not clear from the record whether petitioners at any time in fact submitted a Form 1040X, Amended U.S. Individual Tax Return, with respect to 1996.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