O.H. Tolley, Jr. and Betty Tolley - Page 5

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          a taxpayer's treatment of an item if the Commissioner                       
          "acquiesced" with respect to such treatment in prior years.  See            
          sec. 7463.  Respondent counters that the IRA deduction issue                
          presented in 1990 and 1991 was not litigated and that                       
          respondent's concessions, if any, concerning those years are not            
          relevant here.  We agree with respondent and reject petitioners'            
          arguments.                                                                  
               Each tax year is to be considered separately.  United States           
          v. Skelly Oil Co., 394 U.S. 678, 684 (1969).  It is well                    
          established that the Commissioner is not bound to allow a                   
          deduction in a tax year although a deduction was permitted in               
          prior years.  Easter v. Commissioner, 338 F.2d 968, 969-970 (4th            
          Cir. 1964), affg. per curiam T.C. Memo. 1964-58; Rose v.                    
          Commissioner, 55 T.C. 28, 32 (1970).  We reject petitioners’                
          argument that an exception to this rule applies to disputes                 
          involving $10,000 or less.                                                  
               To reflect the foregoing,                                              

                                                  Decision will be entered            
                                             for respondent.                          














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