William L. and Mary Lee Powell - Page 9

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          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 1314                






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