- 4 -
any time elected to have section 475(f) apply to the securities
he held in 2000.
Respondent sent petitioner a letter dated July 12, 2001,
requesting that petitioner complete a Schedule D with information
to support his entry of $55,778.28 in losses on line 13 of the
Form 1040. Petitioner thereupon completed a Schedule D for 2000
and submitted it to respondent. Petitioner's Schedule D reported
net short-term capital losses of $55,778.28 and no long-term
capital gains or losses.
Respondent subsequently sent petitioner a so-called math
error notice3 dated September 3, 2001, which stated: "We changed
your 2000 return. As a result of these changes, you owe
$30,965.64. * * * You figured your capital gains and losses on
Schedule D incorrectly." Respondent did not send a notice of
deficiency to petitioner for 2000.
Petitioner responded to the math error notice by means of a
letter to respondent dated December 5, 2001, in which he
maintained that his 2000 return as originally filed was correct,
including the position that no Schedule D needed to be filed. In
response, respondent sent petitioner a Letter 105C dated March
20, 2002, advising of the disallowance of most of petitioner's
claimed $55,778.28 loss on the grounds that the loss was limited
3 See sec. 6213(b)(1). The letter was headed "We Changed
Your Return-You Have an Amount Due".
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: November 10, 2007