Earl R. and Mary A. Palmer - Page 8




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          erroneous acts or omissions of internal revenue agents or                   
          employees.  Estate of Emerson v. Commissioner, 67 T.C. 612, 617-            
          618 (1977); Auto. Club v. Commissioner, 353 U.S. 180 (1957).                
          Prior administrative determinations that involve the same or                
          related taxpayers do not preclude the Internal Revenue Service              
          from making a contrary determination for a different year.  Coors           
          v. Commissioner, 60 T.C. 368, 406 (1973).  The Court holds,                 
          therefore, that, even though respondent held in 1987 that the               
          retirement benefits from Mr. Simon's pension were not gross                 
          income for petitioners' 1981, 1984, and 1985 tax years,                     
          respondent is not estopped or barred in this case from taking a             
          contrary position for a subsequent tax year.                                
               Petitioners' second argument is that, because petitioner's             
          portion of her former husband's retirement benefits was reduced             
          for Federal income taxes, the withholdings relating to her                  
          interest should be credited against the deficiency.  This Court             
          has held that the credit for withheld taxes allowable under                 
          section 31 does not enter into the computation of deficiencies              
          determined under section 6211(a) and (b)(1).  Redcay v.                     
          Commissioner, 12 T.C. 806, 809-810 (1949).  Moreover, 10 U.S.C.             
          section 1408(c)(1) (1988), relating to retired military benefits            
          refers to the "disposable retired or retainer pay" of military              
          personnel.  By definition, as to divorces effective prior to                
          February 3, 1991, the phrase "disposable retired pay" means the             





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