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preparer, and the preparer correctly omitted from income the
deferred portions of petitioner’s section 457 contributions.
Petitioners never filed amended returns for the prior years to
obtain refunds of the taxes paid on the deferred portions of
petitioner’s salary. At trial, petitioners did not offer copies
of their income tax returns for these years. For the year at
issue, 2000, petitioners contend that the income taxes they paid
in prior years on income that was tax deferred should be
attributed to the deficiency at issue, the $9,525 distribution
they received from PEBSCO during the year 2000.
The Court rejects that argument. To begin with, petitioners
did not establish the amount of taxes they paid in the prior
years on the income that was tax deferred. Petitioners did not
offer copies of their tax returns from which the tax on the
deferred income might possibly be calculated. Petitioners failed
to file amended tax returns for these prior years to obtain
refunds of the taxes paid on the deferred income. Finally, even
if petitioners were to file amended returns at this time for
those prior years, it is most likely they could not recover
credits or refunds because, under section 6511, there is a
limitations period that is generally 3 years from the date the
return was filed or 2 years from the date the tax was paid. No
evidence was presented to the Court to show that the periods of
limitation were ever extended for any of the years for which
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