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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). In essence, the mitigation provisions of the Code
act as an exception to the statute of limitations. If the
requirements of sections 1311 through 1314 are met, a year closed
by the statute of limitations can be reopened for the limited
purposes of the mitigation sections. In this case, if mitigation
were to apply, it would mean reopening 1980 and 1981 in order to
carry back the 1983 and 1984 NOL’s.
However, respondent determined deficiencies for 1990 and
1991, which petitioner petitioned for review. We have
jurisdiction only to redetermine the 1990 and 1991 deficiencies.
The mitigation provisions do not apply to 1990 and 1991.
Accordingly, we lack jurisdiction to redetermine petitioner’s
income tax liability for 1980 and 1981. Sec. 6214(b).
Finally, petitioner requests that the refunds that would be
generated as a result of the carrybacks to 1980 and 1981 apply as
a credit to offset the tax liability he owes for 1990 and 1991.
Petitioner is, in effect, raising the theory of equitable
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