Allen R. Davison and Sharon L. Davison, T. C. Memo. 2023-139, filed 11/20/23, can’t substantiate the NOL that they claim wipes out all their tax liabilities. Besides, they can’t fight about their flock contract deduction either, because they didn’t raise it at the CDP; I’m not sure if it’s to do with chickens or software.

And their claim for Section 6601(d)(1) restrictive interest treatment founders when their NOL claim goes down. Judge Elizabeth Crewson Paris explains: “In the case of an income tax deficiency that is later reduced by the carryback of an NOL, section 6601(d)(1) authorizes the Commissioner to collect deficiency interest from taxpayers such as petitioners whose deficiencies are eliminated by NOL carrybacks. Section 6601(d)(1), which codifies the principle… that a taxpayer is liable for interest on a deficiency until the deficiency is paid or otherwise abated, provides that a reduction in tax by reason of a carryback of an NOL does not affect the computation of statutory interest due for the period ending with the filing date for the taxable year in which the NOL arose.” T. C. Memo. 2023-139, at pp. 20-21. (Citations omitted).

Sharon wants innocent spousery, but fails. “The evidence showed that Mrs. Davison received income that gave rise to the deficiencies, was involved in the business activities, and meaningfully participated in the prior cases. The Court will not further address this issue.” T. C. Memo. 2023-139, at p. 13-14, footnote 16.

Is this the end of the Davisons’ twenty-year Tax Court safari? I did get two blogposts out of it, although I’m sure I missed more. See my blogposts “Maybe Not Over,” 4/3/19, and “What Kind of Tool Am I?” 5/14/20.