- 15 -
2001 and 2002 to reduce his AMTI in 1999, 2000, and 2001.12 See
Merlo v. Commissioner, 126 T.C. 205, 212 (2006).
C. ATNOL
Petitioner asserts he is entitled to an ATNOL deduction for
AMT capital losses recognized in 2001 and 2002 and he is entitled
to carry back the losses to reduce his AMTI.
Generally, a taxpayer may carry back a net operating loss
(NOL) back to the 2 taxable years preceding the loss, then
forward to each of the 20 taxable years following the loss.13
Sec. 172(b)(1)(A). Section 172(c) defines an NOL as “the excess
of the deductions allowed by this chapter over the gross income”,
as modified by section 172(d). In the case of a noncorporate
taxpayer, the amount deductible on account of capital losses
cannot exceed the amount includable on account of capital gains.
Sec. 172(d)(2)(A); Erfurth v. Commissioner, 77 T.C. 570, 576
12 Petitioner argues that because the instructions to line 9
of Form 6251, Alternative Minimum Tax--Individuals, for 2000 do
not mention sec. 1211, the instructions indicate that sec. 1211
does not apply for purposes of calculating his AMTI. We do not
need to consider whether petitioner’s interpretation of the
instructions is correct. It is settled law that taxpayers cannot
rely on informal IRS instructions to justify a reporting position
that is otherwise inconsistent with the controlling statutory
provisions. Johnson v. Commissioner, 620 F.2d 153, 155 (7th Cir.
1980), affg. T.C. Memo. 1978-426; Graham v. Commissioner, T.C.
Memo. 1995-114; Jones v. Commissioner, T.C. Memo. 1993-358.
13 In the case of NOLs incurred in 2001 or 2002, sec.
172(b)(1)(H) creates a 5-year carryback. Petitioner argues that
he is entitled to relief from the 5-year carryback. However,
because we conclude infra that petitioner is not entitled to an
ATNOL, petitioner’s argument is moot.
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