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contends, in effect, that petitioner and Betsy originally
overstated their 1983 tax liability by significantly more than
$22,202.
As the text preceding table 13, supra, shows, this state of
affairs results from a 1987 audit that resulted in respondent’s
deciding that petitioner and Betsy overstated their taxable
income (by $69,885) and tax liability (by $34,942). The record
herein does not explain why the 1987 audit adjustment was made.
The stipulated revenue agent’s report does not show that this
adjustment was related to any other adjustment for any other
year. In this regard, the instant cases are materially different
from those where a nonfraudulent tax return was made fraudulent
by a later action of the taxpayer fraudulently claiming a
carryback to the originally nonfraudulent year. E.g., Arc Elec.
Const. Co. v. Commissioner, 923 F.2d 1005 (2d Cir. 1991), revg.
T.C. Memo. 1990-30; Toussaint v. Commissioner, 743 F.2d 309 (5th
Cir. 1984), affg. T.C. Memo. 1984-25. The instant cases also are
materially different from those where the taxpayer unsuccessfully
claimed that the original fraud was “cured” (i.e., the
underpayment was eliminated, in whole or in part) by a later
action of the taxpayer. E.g., Romm v. Commissioner, 245 F.2d
730, 736 (4th Cir. 1957), affg. on this issue and revg. on
another issue T.C. Memo. 1956-104 (payment of correct tax
liability before notice of deficiency); Gum Products, Inc. v.
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