9 and the recapture of the investment credit in 1984 operate as a double disallowance of credit. Thus, petitioners claim that there was an overpayment of tax in 1984. Petitioners argue that the taxes assessed for 1982 and 1983 should be offset by the amount of taxes paid by petitioners in 1984 with respect to the investment credit recapture. Respondent argues that the Court is without jurisdiction to consider petitioners' mitigation argument because (1) the tax years 1982 and 1983 are open and the provisions do not apply to those years and (2) the tax year 1984 is not before the Court. Where applicable, the mitigation provisions permit the correction of an item that is shown to be erroneous by a determination in an administrative or judicial proceeding relating to another year. Fruit of the Loom, Inc. v. Commissioner, T.C. Memo. 1994-492, affd. 72 F.3d 1338 (7th Cir. 1996). If the mitigation provisions apply, the taxable income for the year of the error may be adjusted under section 1314. Sec. 1311(a). Petitioners allege that the recapture of the tax credit in 1984 was erroneous. However, the tax year 1984 is not before us, and we lack jurisdiction to redetermine whether petitioners overpaid their income tax liability for that year. Sec. 6214(b). Furthermore, we do not believe that the mitigation provisions permit the relief sought by petitioners in this proceeding. If the adjustment determined under section 1314Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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