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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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Last modified: May 25, 2011