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predicate. Respondent has not violated any duty of consistency.
To the contrary, respondent, having become aware of the facts of
petitioners' situation, has consistently maintained that the
partnerships and their transactions are shams.
Petitioners have not shown that respondent's actions in any
way prevented them from filing administrative adjustment requests
for the years in which the partnerships reported income. In
rejecting a similar estoppel argument, we have stated:
We need only comment that there was no fraud,
concealment, misrepresentation, omission, negligence,
violation of duty, or unfair conduct on the part of
respondent. * * * This being the case, we cannot say
that petitioners were misled or actually relied upon
any representation or omission of the respondent.
[Saigh v. Commissioner, 36 T.C. 395, 423 (1961).]
See Herrington v. Commissioner, 854 F.2d 755 (5th Cir. 1988),
affg. Glass v. Commissioner, 87 T.C. 1087 (1986); 15 Mertens, Law
of Federal Income Taxation, sec. 60.05, at 19-23 (1989).
Moreover, the doctrine of consistency does not impose an
affirmative duty upon respondent to stay on the lookout, and to
analyze for error, petitioners' returns for years later than
those in issue. If the underlying transactions were shams, and
the income was not properly reported in earlier years, it was
petitioners' responsibility to file corrective administrative
adjustment requests under section 6227. Petitioners have filed
T.C. 853, 860 (1990). Petitioners' citation of these authorities
in this context stretches them far beyond any reasonable
application.
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