-425-
Petitioners’ entitlement to an investment tax credit
carryover for 1978 is not addressed in the stipulation of
settlement the parties filed with the Court on May 15, 1995.
Petitioners now nevertheless contend that the disposition of the
credit carryover issue is tied to the resolution of the
underlying investment tax credit issue for 1977--a year that was
not before the Court in these consolidated cases
The Court rejects petitioners’ argument as contrary to the
burden placed upon them under Rule 142(a). Petitioners presented
no evidence to establish the existence of, nor their entitlement
to, the claimed carryover. See Leavell v. Commissioner, T.C.
Memo. 1996-117.165 Moreover, petitioners must bear responsibility
for submitting to the Court a stipulation of settlement that does
not make any reference to this issue. Since there are several
factual matters that must be established to prove the amount of
the carryover that were not established at trial, the Rule 155
computational process is not a forum within which this matter can
be considered. See Price v. Commissioner, T.C. Memo. 1995-290.
The Court, therefore, rejects petitioners’ argument that this
issue is computational under Rule 155. Respondent is sustained
on this issue.
165 For example, the burden of proof includes not only
establishing the amount of the investment credit for the year the
credit was earned but also establishing what portion of the
credit was absorbed or applied in the carryback of the credit to
prior years, after which the remaining amount of the credit can
be applied to the first carryforward year.
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