7
In the motion to dismiss, respondent argues that the Court
does not have jurisdiction to redetermine petitioners' tax for
the years in issue to the extent that the amounts assessed by
respondent are attributable to the proper reporting of
partnership items.
Petitioners' shares of the losses and investment credit
basis of the partnership for 1982 and 1983 are partnership items.
Accordingly, we are without jurisdiction over the deficiencies
attributable to these items which were assessed as computational
adjustments. Furthermore, petitioners agree that we are without
jurisdiction over the computational adjustments in this affected
items proceeding. See Bradley v. Commissioner, 100 T.C. 367, 371
(1993); Saso v. Commissioner, 93 T.C. 730, 734 (1989).
Petitioners, however, argue that the investment tax credit
recapture reported on their 1984 return is an affected item, and
they contend that they overpaid taxes in 1984 as a result of
recognizing recapture of a portion of the investment credit
respondent has since disallowed in taxable years 1982 and 1983.
Respondent counters that we do not have jurisdiction to offset
the taxes assessed for 1982 and 1983 by petitioners' alleged
overpayment in a year not before the Court.
As we understand it, petitioners' argument is that the
affirmative defense of equitable recoupment applies and that the
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