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adversaries from the expense and vexation of multiple lawsuits,
conserves judicial resources, and fosters reliance on judicial
action by minimizing the possibility of inconsistent decisions.
Montana v. United States, supra at 153-154; Meier v.
Commissioner, 91 T.C. 273, 282-284 (1988). Collateral estoppel
can apply in Federal tax cases. Commissioner v. Sunnen, supra at
598.
Collateral estoppel applies in the following circumstances:
First, the matter at issue in the second suit is identical with
the one decided in the first suit. Id. at 599-600. Second,
there is a final judgment rendered by a court of competent
jurisdiction. Peck v. Commissioner, 90 T.C. 162, 166 (1988),
affd. 904 F.2d 525 (9th Cir. 1990); Gammill v. Commissioner, 62
T.C. 607, 613 (1974). Third, the parties to the second suit are
the same as the parties to the first suit or in privity with
them. Peck v. Commissioner, supra at 166-167; Gammill v.
Commissioner, supra at 614-615. Fourth, the parties have
actually litigated the matters at issue, and the resolution of
those matters was essential to the prior decision. Commissioner
v. Sunnen, supra at 598, 601. Fifth, the controlling facts and
legal principles remain unchanged. Id. at 599-600. Sixth, there
are no special circumstances that would warrant making exception
to the normal rules of preclusion. Montana v. United States,
supra at 162; Meier v. Commissioner, supra at 291-292.
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